Fundamental Analysis

Fundamental Analysis

Fundamental introduction
What is fundamental analysis?
Fundamental analysis in Forex is a type of market analysis which involves studying of the economic situation of countries to trade currencies more effectively.
It gives information on how the big political and economical events influence currency market. Figures and statements given in speeches by important politicians and economists are known among the traders as economical announcements that have great impact on currency market moves. In particular, announcements related to United States economy and politics are the primary to keep an eye on.
.... read more

Economic Calendar
Impact factor — suggests how much influence current economic data is expected to bring along.
It is important to know the time of High impact data release if you trade affected currency pair.
During actual news release market becomes volatile. The strength of the volatility depends on the "factor of surprise" brought in the news.
.... read more

Economic Indicators
What moves EUR/USD?
US economic indicators by Rank:
1. US Non Farm Payroll — measures new jobs created in States.
2. Interest rates — FOMC rate decisions.
3. US Trade Balance, European Trade Balance — a proportion between exports and imports in US economy.
.... read more

Five Key Factors that Move the Forex Markets
1. Interest Rate
2. Economic Growth
3. Geo-Politics
4. Trade and Capital Flows
5. Mergers and Acquisitions

Forex Interbank Market
According to an April 2004 report by the Bank for International Settlements, the foreign exchange market has an average daily volume of close to $2,000 billion, making it the largest market in the world. Unlike most other exchanges such as the New York Stock Exchange or the Chicago Board of Trade, the FX market is not a centralized market.

Read More...