Fundamental basis
Fundamental analysis
Fundamental analysis plays a crucial role in forex trading as it helps traders evaluate the intrinsic value of a currency and aids in making long-term and medium-term trading decisions. Let’s delve into the reasons why fundamental analysis is essential in forex:
- Understanding Influencing Factors: Fundamental analysis enables you to grasp the factors that directly or indirectly affect currency prices, such as interest rates, inflation, and government fiscal and monetary policies. This knowledge empowers you to make more informed trading decisions.
- Predicting Market Trends: By analyzing economic data, you can forecast long-term and medium-term currency trends. For instance, if a country is raising interest rates, its currency’s value is likely to appreciate. These predictions can help you enter the market at opportune moments and capitalize on profitable opportunities.
- Better Risk Management: Fundamental analysis allows you to effectively manage trading risks. By thoroughly understanding the economic and political conditions that may impact the market, you can make more informed decisions and avoid unexpected losses.
- Supporting Technical Analysis: Combining fundamental analysis with technical analysis can provide you with a more comprehensive view of the market. While technical analysis focuses on charts and price trends, fundamental analysis can explain the reasons behind these changes and help confirm or refute your technical analysis findings.
- Identifying Long-Term Trading Opportunities: Fundamental analysis allows you to identify long-term opportunities in the forex market. If you discover that a currency is consistently influenced by positive factors, you can leverage this knowledge to generate profits over time.
- Recognizing Global Economic Trends: By understanding fundamental analysis, you can identify overarching economic trends and monetary policies at the global level, which significantly impact the forex market.
In conclusion, learning fundamental analysis equips you with the necessary tools to gain a deeper understanding of the market and make better trading decisions, ultimately leading to increased profitability and reduced risk.
Forex Fundamental Analysis – 18th to 22th nov
Unemployment Claims Index Release Date: Wednesday, November 21 As an important economic indicator, Unemployment Claims shows the number of people who have recently registered to receive unemployment benefits. This index is considered a key gauge of the labor market’s health. Economic analysts usually examine the trend in the number of unemployment claims to identify signs…
Forex Fundamental Analysis – 11th to 15th nov
Core Consumer Price Index (CPI) m/m News release day: Wednesday, November 13 The Core Consumer Price Index (CPI), or “net inflation,” is a measure of inflation that excludes the volatile components of food and energy prices. The term “M/M” refers to the month-over-month change in the index, indicating the percentage change in prices from one…
Forex Fundamental Analysis – 4th to 8th nov
ISM Services Purchasing Managers’ Index Tuesday, November 5 The Institute for Supply Management (ISM) will release the U.S. Services Purchasing Managers’ Index (PMI). This index measures the economic health of the non-manufacturing sector and tracks changes in production levels across the U.S. compared to the previous month. The report is released on the first business…
Forex Fundamental Analysis – 28th oct to 1st nov
CCI Index News release day: Tuesday, October 29 The CCI is published on the last Tuesday of each month and is widely regarded as the most reliable measure of consumer confidence in the United States. Essentially, the CCI measures the health of the U.S. economy based on consumers’ perceptions of current business conditions and employment,…
Forex Fundamental Analysis – 21th to 25th oct
Unemployment Claims Index News release day: Thursday, October 24 The Unemployment Claims Index displays the number of individuals who have filed for unemployment benefits for the first time within a week. This index is one of the most important economic indicators that directly impacts the market. Unemployment claims refer to cash payments made to individuals…
Forex Fundamental Analysis – 14th to 18th oct
Retail Sales Index News release day: Thursday, October 17 The core retail sales index is a vital economic indicator that tracks monthly changes in U.S. consumer spending, excluding volatile categories such as automobiles, gasoline, building materials, and food services. One of the key reasons for the importance of the retail sales index is that it…
Forex Fundamental Analysis – 7th to 11th oct
FOMC Index News release day: Wednesday, October 9, 2024 The FOMC holds eight regularly scheduled meetings per year. At these meetings, the Committee reviews economic and financial conditions, determines the appropriate stance of monetary policy, and assesses the risks to its long-run goals of price stability and sustainable economic growth. It’s a detailed record of the…
Forex Fundamental Analysis – sep 30th to oct 4th
Jerome Powell’s Speech, Chair of the Federal Reserve Release Date: Monday, September 30 As data from the final quarter of 2023 suggested a decline in inflation, the tone of Federal Reserve officials shifted from contractionary to expansionary, with risk-taking replacing risk-aversion. This change was driven by expectations for interest rate cuts in 2024, with markets…
Forex Fundamental Analysis – September 23-27
Purchasing Managers’ Index (PMI) News Release Date: Monday, 23 September The Purchasing Managers’ Index (PMI) is a measure that indicates the overall direction of the economy in the manufacturing sector. This index is based on a monthly survey of supply chain managers across 19 industrial sectors, covering the entire production process from start to finish…
Forex Fundamental Analysis – September 16-20
Retail Sales Index News release day: Tuesday The Retail Sales Index is a crucial economic index, typically released on a monthly or annual basis. This index measures the total value of goods and services sold by retailers within a specific region or country. This news will be released on Tuesday at 4:00 PM Iran time.…
Forex Fundamental Analysis – September 9-13
Consumer Price Index (Core CPI) News release day: Wednesday The Consumer Price Index (Core CPI) is a pivotal economic index that quantifies fluctuations in the prices of consumer goods and services acquired by households. Released on a monthly basis, this index serves as a benchmark for gauging inflation rates and the purchasing power of consumers.…
Forex Fundamental Analysis – September 2nd to 6th
Manufacturing PMI Index News release day: Tuesday The Manufacturing PMI will be released on Tuesday at 5:30 PM. The Manufacturing PMI is an economic index that reflects the state of economic activity in various sectors, particularly manufacturing and services. This index is derived from a survey of purchasing managers in manufacturing companies and is published…
Forex Fundamental Analysis – August 26th to 30th
CCI Index According to the consensus forecasts of FOREXFACTORY and Investing.com regarding the Consumer Confidence Index, if the reported index exceeds the projected value of 100.9, it will indicate a surge in consumer confidence. Consequently, we can anticipate an appreciation of the US Dollar and a depreciation of correlated assets such as gold, the Euro,…