The fundamental analysis in the currency market depends on the macroeconomic study. It represents the economic situation of a country through the strength or weakness of the currency and thus constitute a mirror reflecting the strength or weakness of the local economy .
The more stable the economy is, the stronger the local currency of the country will be.
Some key economic indicators such as interest rates.
growth rates and inflation, industrial and service production.
labor market and unemployment rates are all affected by economic, social and political factors, which in turn affect the supply or demand of the local currency.
There are two main methods to analyze the market during trading sessions.
Both of which are very popular among the rattles.
Known for technical analysis, changes in the market are expected based on past facts and according to the direction and behavior of the market.
The other is fundamental analysis which focuses on current events accurately and closely in an attempt to predict the reversal and transformation of the market.
When preparing the fundamental analysis, the trader will study the economic situation completely.
It has to focus mainly on the appropriate elements for trading.
The research will focus on financial and economic events, where there is a divergent relationship between these events and yet may affect trading.
This type of analysis is intended for traders .
who want to get more into the world of finance and investment.
Basic analysis needs more time than traders who want and are able to invest.
But should have positive results if done correctly.
What stands behind any kind of analysis is the desire to avoid surprises that could threaten the traders’ money.
So, the deeper the research and analysis, the less chance there is for the element of surprise.
Some of the world’s top traders who appear regularly at the top of the list of the richest people use fundamental analysis in their trades and this is precisely a good track to follow.
It must be emphasized that when conducting a thorough and thorough fundamental analysis, there will be no guarantee of a successful trading.
The nature of trading on any financial instrument is also linked to external factors that may affect it.
Sometimes the market may change abruptly in minutes.
different from our expectations and changing the fate of our trades.
we recommend that you begin to recognize the amount of information available about the financial instrument you wish to trade.
All recurring events must be taken into account.
You should find the right source to get daily news and make sure to track it by subscribing to their website and logging in regularly.
One of the main tools of basic analysis is a careful follow-up to the economic diary.
It is important that the trader be aware of the expected economic events involving influential players in the trading arena.
such as the State Treasury, the Ministry of Finance, the Central Bank, commercial banks, etc.
The person should know which events are appropriate for the market he is trading in, and then inquire about how to prepare for those events.
An example of how important fundamental analysis is is to look at the monthly Unemployment Rate report, called the US Nonfarm Employment Data Report (NFP).
which could lead to changes in the value of other derivatives, such as gold, crude oil and others.
And before the payroll of non-working staff in the agriculture sector was published by the US Bureau of Labor Statistics.
Traders are expected to predict the contents of the statement of approval based on their trading accounts and positions.
This is called basic analysis.
What is the most important news in the basic analysis and how to follow it:
To follow the dates of issuance of news and economic indicators of countries are through the economic calendar where the dates are presented with the results of the news.
Economic News Too many of them have a strong impact on the movement of the market and others are not affected significantly on the strength of market movement.
We will discuss the ten most important economic news of interest in the developments in general. This news is unified for all the influential countries in the market.