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Thread: Fundamental Analysis in Forex

  1. #1
    Moderator cool user Resolve's Avatar
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    Smile Fundamental Analysis in Forex

    Fundamental Analysis in Forex

    Fundamental Analysis takes into account factors such as the Social, Economic and Political which will directly affect the currency of that country.

    Since each country has its own sets of Social, Economical and Political factors that come into account, which tend to change the price of that country's currency when any such event happens. This is the main reason why we have an Economic Calendar which lists out such Events and the Exact Date and Timing of such events that will take place.

    Economic Calendar lists out such events and classifies them into 3 Categories:

    1. High Impact = This type of event will trigger High to Moderate change in the prices of the currency.
    2. Medium Impact = This type of event will trigger Moderate to Little change in the prices of the currency.
    3. Low Impact = The type of Event will trigger only Little or no change in the prices of the currency.


    We will need to Track such events and see what is the possible outcome of such an event and Plan our trades accordingly in advance. Since most of the Fundamental News that comes into the markets has an Instant reaction in the form of the Spikes, we will need to Enter into the markets before the release of the News events.

    What is Fundamental Analysis?

    Fundamental Analysis takes into account the Major Economic Indicators that will have a Direct Effect on the Demand and Supply of the Currency of that Country. We also track the Major Economic Developments that are actually taking place in the country and also the Political Events which may or may not be classified.

    The market usually awaits such Economic Data and most of the times the Effect of the Fundamental News comes into play after the release of the News and the Data that it contains. But many times even before the release of the News Data the market starts moving based on the Analyst Projections about the Forthcoming News Data.

    The Major Economic Indicators are:

    • Gross Domestic Product GDP
    • Retail Sales
    • Consumer Price Index CPI
    • Interest Rates
    • Unemployment Data and Wages
    • Stock markets and Exchange Traded Funds ETFs
    • Producer Price Index PPI
    • Balance of Trade BOT
    • Housing Market
    • Manufacturing Activity
    • Inflation Data
    • Central Bank News
    Last edited by Resolve; 10-19-2021 at 04:33 PM.

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    Forex_swiz (10-30-2021)

  3. #2
    Moderator cool user Resolve's Avatar
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