Fundamental analysis - forex broker PAXFOREX

Fundamental analysis - forex broker PAXFOREX


Participation in trades that take place in the sphere of inter-bank currency exchange can bring
great benefits by using the right methods and taking into account various indicators.
Fundamental analysis - forex broker PAXFOREX will allow you to evaluate the macroeconomic
potential that affects the exchange rate and the market. This method of research provides an
opportunity to assess the various components of the economy and those, who want to have
reliable opinion of the broker can easily get it here.
Basic information
By conducting a fundamental analysis, while the other will become a cheaper. In this study, it is
necessary to use information that highlights the rates of the Central Bank, disclose the financial
intentions of the government, allow assessing changes in the political sector.
Rules and conditions for conducting surveys
On the part of the fundamental analysis, the currency rate is directly affected by economic
growth, which depends on the volume of GNP and industrial production.
In addition, the analysis implies a study of the trade balance and the identification of how much
the market depends on foreign sources of raw materials. Also within the framework of the study,
inflation and interest rates, the rate of increase in the volume of money in the domestic market,
are taken into account.
The fundamental analysis examines speculative operations and the level of development of the
various subsystems of the world financial market.
This method of evaluation requires the trader not only to understand the basic economic laws,
but also the ability to compare unrelated events and factors to obtain a general picture.
Leading experts of domestic and international financial markets in the projections in the first all
pay attention to significant changes in the political life of the various states, the changes in the
banking system, economic policy and its main vectors. A special place in this list is occupied by
all kinds of rumors, gossip and expectations - they can also have a significant impact on the
situation.
A list of more specific indicators that have a direct effect on currency fluctuations is as
follows:
 the level of development of all spheres of the stock market;
 speculation taking place on the currency exchange;
 the level of confidence in the currency on the part of the population;
 degree of solvency of states;
 percentage of inflation;
 the level of money supply in the market;
 economic development potential (estimated GDP, growth or decline in production
level, etc.).
Unlike technical analysis, which is carried out in accordance with specific methods, formulas
and principles, the analysis of the fundamental thing is far from simple and unambiguous - it is
extremely difficult to deal with it. One of the main wagons is that an absolutely identical factor
can have a different impact on the market in two completely different situations. In the ability to
understand the consequences of global changes in the world and to compare them among
themselves, the main subtlety of fundamental analysis lies.

By the degree of effectiveness, there is no equal analysis of macroeconomic factors. It is not
enough, is unlikely to do without good analytical skills to achieve the desired result to possess
operational information, also need to be regularly and persistently improve.
The professional must quickly compare the events taking place between themselves and take
lightning-fast right decisions. But even the Forex guru is not immune from error. The foreign
exchange market is too unpredictable and there is no ideal formula for success. To confirm this
point of view is not difficult - just carefully read several forecasts of analysts for the same period
of time.