Fundamental Analysis Currency Market

The trading in the forex market are based on the same two basic forms of analysis used in the stock market: fundamental analysis and technical analysis. The uses of technical analysis in Forex are very similar: the price is supposed to reflect all the news and the lists are analyzed. But unlike companies, countries do not have balance sheets, so how can fundamental analysis be conducted on a coin?

The U.S. dollar ended sharply lower against all major currency counterparts in a week of lackluster economic data and a distinct change in rhetoric from the U.S. Federal Reserve. The much anticipated Open Market Committee (FOMC) announcement of the interest rate and the required statement sharp movements in financial markets. Strongly suggests that officials are willing to restart the quantitative easing (QE) measures in case of need was presented, and a tone particularly pessimistic about inflation implied that this could come sooner than later. Since the U.S. dollar fell precipitously in the first wave of QE, QE perspective Part 2 could cause continued dollar weakness against major counterparts. Market approach in the next moves of the U.S. Fedwill economic data, especially the mobile market, and a relatively busy schedule next week could bring strong U.S. dollar volatility. Second revisions to Q2 of gross domestic product data may be the highlight of the next few days of trading, but traders must also be alert to the surprises of the above figures weeks consumer confidence and end week-Manufacturing ISM data.

Moreover, the coins, such as AUD, NZD and CHF benefited from the positive fundamental data and unexpectedly good economic growth reported in April, pushing up against the U.S. dollar. USD / CHF posted its biggest drop since December 2010, while NZD / USD rose fastest since May 2009. reference products such as oil and gold also rose significantly against the U.S. currency.