FXOpen Broker

10+ years’
experience in FX


Trading Accounts

Micro, Crypto


Free Demo

Practice Forex trading
risk free


PAMM Technology

Become a Master
or a Follower

Results 1 to 1 of 1

Thread: Fundamental Analysis in Forex

  1. #1
    Moderator cool user Resolve's Avatar
    Join Date
    Mar 2012
    Thanked 2,776 Times in 1,599 Posts

    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.

  2. The Following User Says Thank You to Resolve For This Useful Post:

    Forex_swiz (10-30-2021)

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)



Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
2005-2021 © FXOpen All rights reserved. Various trademarks held by their respective owners.

Risk Warning: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgment as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.

FXOpen Markets Limited, a company duly registered in Nevis under the company No. C 42235. FXOpen is a member of The Financial Commission.

FXOpen AU Pty Ltd., a company authorised and regulated by the Australian Securities & Investments Commission (ASIC). AFSL 412871ABN 61 143 678 719.

FXOpen Ltd. a company registered in England and Wales under company number 07273392 and is authorised and regulated by the Financial Conduct Authority (previously, the Financial Services Authority) under FCA firm reference number 579202.

FXOpen EU is a trading name of FXOpen EU Ltd. FXOpen EU Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 194/13.

FXOpen does not provide services for United States residents.

Join us