Analysis of the forex trading consists of two parts namely technical analysis and fundamental analysis. Technical analysts base their analysis by mathematical calculation (typically using statistical data) and using the graph (chart - that's why technical analysis principal called chartist) as its main weapon.
Fundamental analysis takes a different approach. Basis used is any news or rumors in the market.
As we all know, financial markets like stocks and money market is very sensitive to the news which was circulating in the market. So what happened in the forex market trading. Even be said that the move is now the exchange rate is just the news itself. In other words, the news is the driving emotion that resulted in changes to market equilibrium in the currency exchange rate.
If you are a layman, it may not be too concerned with the increase in U.S. interest rates for example. But not for a trader. The increase in Central Bank interest rates by the Fed (U.S. central bank) can mean a stronger U.S. dollar to hundreds of points which means that there the money can be obtained. Or conversely, the loss may occur if action is not taken in accordance with the market.
That's why news / news very influential on the investment portfolio of a forex trader. If you want to be a reliable trader, then it's time you also learn fundamental analysis.
Examples of the above rate hike is just one example of the usual fundamental news released each day. Well, why the rate hike could mean strengthening the exchange and what the impact on my investment, that's what you need to learn.
There is a logical flow and economic laws which apply here (although sometimes not 100% true - in reality the fundamental analysis relating not only to the logical thinking of monetary policy or the news that came out but also how the market reacts to the news alias market psychology).
Source, type, and Critical Factor in Fundamental Analysis
The news can be issued survey results, monetary policy until even the incidental events such as terrorism. Such information can be obtained / issued by:
Agency Official / Government
Print media / electronic (TV, website, newspaper, etc.)
Individual
There are more than 50 news that could affect currency movements. Of the 50 news, the effect is quite clear that rise or fall against foreign currencies concerned. Fundamental news that is positive on the issue of the currency means that countries concerned will be strengthened and vice versa partner currencies will weaken.
For instance in the currency GBP / USD, if the U.S. is raising interest rates (again I take the example of interest rates) then the dollar exchange rate strengthened against the pound sterling will. And that means Pund weakened against the dollar since the news of the release by the U.S. is positive for its currency.
For this type of news, there are several types of news if viewed from the field:
Economy
Politics
Security (global, regional, state)
Determining the fundamental analysis:
Speed information
Sources of information
Processing information & forecasting (prediction)
Well, the end of this brief discussion, we include some fundamental news, and related to currency movements. Please note that each country issued its own story, this time it is assumed that the countries which release is the United States.
Fundamental analysis takes a different approach. Basis used is any news or rumors in the market.
As we all know, financial markets like stocks and money market is very sensitive to the news which was circulating in the market. So what happened in the forex market trading. Even be said that the move is now the exchange rate is just the news itself. In other words, the news is the driving emotion that resulted in changes to market equilibrium in the currency exchange rate.
If you are a layman, it may not be too concerned with the increase in U.S. interest rates for example. But not for a trader. The increase in Central Bank interest rates by the Fed (U.S. central bank) can mean a stronger U.S. dollar to hundreds of points which means that there the money can be obtained. Or conversely, the loss may occur if action is not taken in accordance with the market.
That's why news / news very influential on the investment portfolio of a forex trader. If you want to be a reliable trader, then it's time you also learn fundamental analysis.
Examples of the above rate hike is just one example of the usual fundamental news released each day. Well, why the rate hike could mean strengthening the exchange and what the impact on my investment, that's what you need to learn.
There is a logical flow and economic laws which apply here (although sometimes not 100% true - in reality the fundamental analysis relating not only to the logical thinking of monetary policy or the news that came out but also how the market reacts to the news alias market psychology).
Source, type, and Critical Factor in Fundamental Analysis
The news can be issued survey results, monetary policy until even the incidental events such as terrorism. Such information can be obtained / issued by:
Agency Official / Government
Print media / electronic (TV, website, newspaper, etc.)
Individual
There are more than 50 news that could affect currency movements. Of the 50 news, the effect is quite clear that rise or fall against foreign currencies concerned. Fundamental news that is positive on the issue of the currency means that countries concerned will be strengthened and vice versa partner currencies will weaken.
For instance in the currency GBP / USD, if the U.S. is raising interest rates (again I take the example of interest rates) then the dollar exchange rate strengthened against the pound sterling will. And that means Pund weakened against the dollar since the news of the release by the U.S. is positive for its currency.
For this type of news, there are several types of news if viewed from the field:
Economy
Politics
Security (global, regional, state)
Determining the fundamental analysis:
Speed information
Sources of information
Processing information & forecasting (prediction)
Well, the end of this brief discussion, we include some fundamental news, and related to currency movements. Please note that each country issued its own story, this time it is assumed that the countries which release is the United States.
