Daily fundamental analysis PAXFOREX

Daily fundamental analysis PAXFOREX

The importance of daily fundamental analysis
In order to successfully carry out trading on the international foreign exchange market, it is
necessary to conduct fundamental and technical analysis. Daily fundamental analysis
PAXFOREX is the wat to get stable income and feel confident while trading.
Forex market forecasts are useful for both novice traders and experienced market players.
Forecasts Forex (Forex) from professionals allow you to take thoughtful and thoughtful
decisions on the way to making a profit.
The main difference between the fundamental analysis of Forex and technical analysis is that the
fundamental analysis is based on the situation: currency prices in the Forex market are a
reflection of demand and supply, which depends on the fundamental factors of the economy.
Technical analysis in most cases deals with shorter time intervals, from minute to weekly. At
these intervals (timeframes), fundamental analysis, with the exception of one of its varieties
(trade on news) is practically useless, since the fundamental data itself usually comes out once a
week, a month or a quarter.
Features of fundamental analysis
However, if the aim of the analysis is to forecast medium- and long-term forecasts in the Forex
market, then it becomes necessary to carry out research on the internal, underlying causes of
changes in exchange rates. Only this type of analysis will provide an opportunity to assess the
prospects for the dynamics of supply and demand for currencies. In addition, this approach will
give the investor the opportunity not to consider short-term fluctuations - market noise.
The main drawback of the fundamental analysis of Forex is its complexity. It is easy enough,
with the necessary skills, to trace 10-20 interrelations caused as a result of a change in one single
fundamental indicator, but in the case when the fundamental indicators themselves are 50 for
only one country, each of which has its own cause-effect relations of many of these connections
contradict to each other or are reflexive, then you will already need a small research center. For
this reason, a fundamental analysis of Forex in the decision-making is used according to various
estimates of 10-20% of traders, and most of them own it superficially.
In addition, as mentioned above, a fundamental analysis is almost useless for short-term trading,
which means that its use places restrictions on the amount of your funds. You simply may not
have enough money for current losses on an open position in several figures (or the setting of
distant stop orders), which are possible when trading on medium-term trends.
The indicators influencing the Forex market and forming demand and supply for the currency
can be divided into several groups:
Indicators of the movement of trade and investment capital:
These indicators characterize what was and could be the demand and supply for the currency
from the institutions that carry out export-import operations.
 trade balance;
 balance of current accounts;
 balance of capital accounts;
 payment balance.
Indicators characterizing the state of the financial market of the country:
These indicators characterize the potential and current profitability of investment institutions'
investments in assets denominated in national currency, and, accordingly, the current or potential

demand for this currency from investors in fixed assets and assets with constant income (bank
deposits, government and corporate bonds).