Forex Fundamental Analysis
Basic information about fundamental analysis
Fundamental factors and concomitant to them Forex fundamental analysis news are two main things that set the pace for the activity on the foreign exchange market. These key macroeconomic indicators of national economy state have a significant influence upon foreign exchange market players as well as on the level of foreign exchange rates. Just the above mentioned factors are researched by the Forex fundamental analysis. This type of analysis more often is used by the traders who prefer a long-term trading.
Essentials of the Fundamental Analysis
The Forex fundamental analysis allows the player to evaluate the factors that actively influence on exchange rate’s dynamics over a period from a few days to a few weeks. The fundamental analysis on Forex provided to you includes itself the rating of the following factors that have an effect on the exchange rate:
- Indicators of economic growth (gross national product, industrial output, etc.)
- Trade balance state, degree of dependence on external sources of raw materials
- Growth of money supply on domestic market
- Rate of inflation and inflationary expectations
- Level of interest rate
- Country’s solvency and confidence in the national currency on the world market
- Speculative trading in the exchange market
- Development degree of other sectors of the global financial market, the equity market for example, competing with the exchange market.
The Main Goal and Mission of the Forex Fundamental Analysis
The primary goal of the fundamental analysis in Forex is to determine which events might influence on the development of the exchange market and to forecast intensity of currency movements. The analysis of the fundamental indicators is irreplaceable when taking decisions relative to long-range investments, as well as when trading using the Forex fundamental analysis news. Each of these indicators is thoroughly analyzed according to several criteria, with direct aid of best Forex analysis brokers that provide the players useful and valuable daily Forex fundamental analysis, such as the indicator’s appearance time and its periodicity, range of fluctuations in different periods of cycle, units calculation, etc.