Fundamental analysis is a scientific branch that defines the whole dynamic that leads to price movements with macro level economic developments. It also examines all the speculative changes that ranges from political conjuncture to money politics between countries and relies these examinations to solid data circulation. Fundamental analysis has a very strong bond with both country and world based economy and tries to solve the future ambiguities while building a successful investing rudiment by annotating current economic improvements on the prices. Economic growth data, consumer confidence index, FED, interest rates, employment reports, production index, employment apart from agricultural employment, Michigan Confidence Index, retail sales data and unemployment numbers are the main fundamental analysis indicators. Any tool to be used to analize a currency’s self dynamic and its relation with other currencies is a reference to understand and analize the movements of prices in the Forex market. Evaluating economic calender data ,which is the most important part in fundamental analysis, isa starting point for investors who wants to use fundamental analysis methods in Forex markets. When reports that have a strong effect and which summarizes the target country’s situation with exact numbers are released, they can have a strong impact on the currency of the country They can effect many parities specificly when the currency is used as a reserve currency. It is generally not suggested for the investor who don’t have the sufficient academic knowledge to take position before such important happenings. Another progress that may interest Forex investors is the interest rate changes that countries do on behalf of their central banks As any change in any currency’s interest rate would lead to serious changes on money demand, change in the currency’s value will be inevitable because the investors tend to shift to the sources that bring them the most real return. Hence, a deposit account that they know they will get a high interest rate for their money may distract the investor. Briefly the slip motion of the current money is an effective factor on the value of the currency.The duration of financial instruments operating and the duration when they are closed to operation are shown on the table below.
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