Forex Fundamental Analysis


Forex: Japan turns into the biggest crypto hub. Is Russia following its own path?
Forex: Japan turns into the biggest crypto hub. Is Russia following its own path?

Russian president Vladimir Putin warned of “serious risks” accompanying cryptocurrencies during his speech at a government meeting in Sochi yesterday, becoming the first global leade...

Forex: Unexpected drop in U.S. payrolls triggers risk-off sentiment
Forex: Unexpected drop in U.S. payrolls triggers risk-off sentiment

Undoubtedly, the September U.S. Nonfarm Payrolls were shockingly bad. At the beginning of the previous week, analysts had expected a growth of 90K, with a series of very strong relea...

Forex: New Fiscal Year Could See Changes in Last Year’s Trends
Forex: New Fiscal Year Could See Changes in Last Year’s Trends

With many countries entering a new fiscal year in October, many investors are summarising this past year’s portfolio performance while setting new goals. Let’s take a brief look at t...

Not so rosy long-term consequences for USD from the Fed policy
Not so rosy long-term consequences for USD from the Fed policy

The Fed announced the beginning of a reduction in their massive holding of bonds and mortgage-backed securities starting in October, citing the impact of the recent hurricanes on the...

Market Reaction to February 2017 NFP (March 10)
Market Reaction to February 2017 NFP (March 10)

The US Nonfarm Payrolls and Unemployment Rate are out this coming Friday, March 10th 2017, at 13:30 (GMT), and will most likely cause significant volatility in the markets.Considered...

Equities FX and the US Election
Equities FX and the US Election

We’re counting down the final hours to what promises to be the most exciting US election since 2000. The past two seeks have seen markets take on the prospect of a Trump Presidency ...

USDCNY Hit Six Year High, Test Major Resistance
USDCNY Hit Six Year High, Test Major Resistance

As the world obsesses about the US election, we’re going to look at China and the currency in particular. China has always been the ‘elephant in the room’ for the global economy. It...

This time is different in the US Presidential race
This time is different in the US Presidential race

In September, markets obsessed about the US Federal Reserve – would they or won’t they raise interest rates. That didn’t happen, but what is certain is that the US will choose a new...

Kitchen sink full of medicine
Kitchen sink full of medicine

The ECB has taken a six-pronged approach to the latest policy decisions. This is their “kitchen sink moment”, similar to the BoJ back in late 2013 when they went all in with news and...

Russia’s Oil Price Problems
Russia’s Oil Price Problems

I remember around 10 years ago meeting an analyst who covered Russia. This seemed a very interesting opportunity to learn about how the Russian economy and its relationship with the ...

Will Brexit Break Sterling?
Will Brexit Break Sterling?

Exchange rates and money markets are inextricably linked; after all you are just exchanging one form of money for another and the price of money (as an asset or liability) is tied up...

Yellen the dove
Yellen the dove

Finally the Fed has delivered and we now officially enter the US tightening cycle following their hike of 0.25% from 0.25% to 0.50%, the first since June 2006. Whilst the vote was un...

Nonfarm payroll removes Fed uncertainty
Nonfarm payroll removes Fed uncertainty

After the disappointment from yesterday’s ECB meeting that led to a big spike in volatility across all asset classes we’ve seen today’s major nonfarm payroll data announcement from t...

Poor Nonfarm Payroll Casts Shadow over 2015 Rate Hike
Poor Nonfarm Payroll Casts Shadow over 2015 Rate Hike

Today’s worse than expected nonfarm payroll figure has almost totally justified Janet Yellen’s recent caution by not raising rates at last month’s FOMC meeting and puts the chances o...

ECB leads way in setting dovish tone for Central Banks
ECB leads way in setting dovish tone for Central Banks

The ECB has admitted that deflation risks have still not gone away in a very dovish statement at their press conference today following their decision to keep interest rates at histo...

Sterling move suggests no rate hike this year
Sterling move suggests no rate hike this year

The Bank of England’s longer term projection for inflation threw a bucket of cold water over sterling which fell from 1.5600 against the dollar over 100 pips to below 1.5500, whilst ...

Losing all sense over gold
Losing all sense over gold

No doubt about which chart looks the most interesting at the start of this week and that’s gold. Leaving aside the reasons for this latest push lower, it has brought to an end the mo...

Five American investment banks offer support to London after Brexit
Five American investment banks offer support to London after Brexit

Up to five American investment banks have already promised George Osborne, British finance minister that they will try to help London to keep its top spot, such as a finance center. ...

Brexit provokes the greatest dip in UK consumer morale
Brexit provokes the greatest dip in UK consumer morale

British consumer morale is currently facing is greatest slump for up to five years after the previous month’s decision by British voters to abandon the European Union, and poll...

China’s listed companies are in poor financial health
China’s listed companies are in poor financial health

Listed Chinese companies compared with those in the finance sector, appear to be in their worst financial shape for a decade, as a research body under China’s Ministry of Comme...


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.