Fundamental market analysis

Fundamental market analysis

by admin

Most traders in the financial forex market rely on the choice of trading strategies for fundamental and technical analysis.

The fundamental analysis of Forex is based on changes in political and economic public life. These variables are guaranteed to lead to currency fluctuations. Therefore, traders that use fundamental analysis are only interested in actual awareness of the unemployment level, inflation, changes in political trends – and all this is available in news programs and news.

Fundamental analysis of the Trading Group combines ideas about changes in the currency price segment in the aftermath of any development of the economic situation. Our clients will be able to find and determine the most accurate points for entry and exit in forecasts and analyses from experts, guided by relevant valuable data.

The main components of fundamental analysis

However like in other financial markets, in the Forex market almost everything is subject to the principle of theory: supply and demand. Under the influence of many economic factors, the level of demand, market activity and availability of proposals are determined. The key factor here is economic stability and interest rates.

Economic stability is determined by the value of GDP, trade balances of the state and the size of foreign investment.

The main essential data are available in many media with special topics. These indicators are necessary for the trading activity of a professional trader.

Trading Group is up to speed on latest data on a daily basis. The consumer price index, the producer price index, interest rates, orders for durable goods, the level of international trade, orders for retail goods are key indicators.

Consequently if you forecast a high interest rate, the client has the opportunity to earn on the growth of foreign investment.

The currency can weaken or grow stronger depending on the size of interest rates. It’s important to know, because the growth of this rate promotes the sale of securities by investors. They are guided by a perfectly understandable solution, in the presence of increasing difficulties in obtaining credit the efficiency and profitability of the company will drop. In turn, the sale of its investors’ share is reflected in the market by its fall and negatively affects the state economy.

International trade reflects a foreign trade deficit and situations in which more products are imported than exported. This shows that the number of leaving state money is steadily more than those that enter it. This can contribute to the devaluation of the national currency. This imbalance trade is also taken into account during the compilation of a fundamental analysis.

For example, if this indicator remains in a stable state for a long time for the foreign trade deficit, it is not so clearly reflected in the currency fluctuations. But if it exceeds the expectation of the market, the price of the currency will change significantly.

In order for the Trading Group client to choose his trading strategy through fundamental analysis, it’s worthwhile to note indicator that reflects the change in the subsistence level and prices for manufactured goods. The situation with the gross domestic product is also important, because this is the main indicator in the prices change for goods and services produced in the country. The monetary apparatus M2 is also important, which determines the total size of the state’s currency.

A fundamental analysis of our company allows us to form the most accurate picture of the current economic situation in order to predict and determine the most profitable entry and exit points.