Most FOREX traders rely on analysis to make plan their trading strategy. This article will discuss fundamental analysis. The other common form of analysis is technical analysis. After reading this article you should have a better understanding of fundamental analysis and how to use it as part of your FOREX strategy.
Political and economic changes are the basis of fundamental analysis. These can frequently affect currency prices. Traders that take advantage of fundamental analysis will gather their information from a variety of news sources. They are looking for information about unemployment forecasts, political ideologies, economic policies, inflation and growth rates.
Fundamental analysis will provide you with an overview of currency movements and a broad picture of the economic conditions. Most traders then will combine their fundamental analysis with technical analysis to plot actual entrance and exit points as well as confirming the information provided by their fundamental analysis.
Just like most markets the FOREX market is controlled by supply and demand. Many economic factors can affect the supply and demand but the two most critical ones are interest rates and the strength of the economy. The over all strength of the economy is affected by changes in the GDP, trade balances and the amount of foreign investment.
There are many economic indicators released by government and academic sources. These indicators are usually released on a monthly basis but will sometimes be released weekly. These are pretty reliable measures of economic health and are closely followed by all traders.
There are many indicators that are released but some of the most important and commonly followed are : interest rates, international trade, CPI, durable goods orders, PPI, PMI and retail orders.
Interest Rates - can cause a currency to either strengthen or weaken depending on the direction of movement. In some cases high interest rates will attract foreign money, however high interest rates will frequently cause stock market investors to sell of their portfolios. They do this believing that the higher cost of borrowing money will adversely affect many companies. If enough investors sell of their holdings in can cause a downturn in the market and negatively affect the economy.
Which of these two affects will take place depends on many complex factors, but there is usually an agreement among economic observers as to how the current change in interest rates will affect the general economy and the price of the currency.
Sunday, January 4, 2009
FOREX Fundamental Analysis
Sunday, July 13, 2008
ForexGen Announce Opening England Branch
ForexGen LLC offers the retail trader/investor, corporation, money manager and hedge fund a complete e-commerce solution for trading margined foreign currency in the interbank market.
ForexGen LLC provides real-time margin monitoring capability in our unique, easy-to-read format. We believe that our clients need to know exactly where they stand in real time so that educated trading decisions and expert trade selection can be accomplished.
Due to expanding the activities that ForexGen LLC provides, ForexGen Announce the opening of United Kingdom Branch
Suite 72, Cariocca Business Park,
2 Sawley Road, Manchester,
Lancashire, M40BB, ENGLAND
United Kingdom
+441612619872
The Operational Office in Norway
Tollbugata 17, 0152 Oslo, Norway
Box 778 Sentrum, 0104 Oslo, Norway
For even more reasons to use ForexGen LLC, please read about the benefits of trading through ForexGen LLC.
Join the rapidly growing list of traders and money managers who have discovered the advantages of foreign exchange trading for their clients and individual trading portfolios. We are certain that after you learn more about our products, our services, and try our full-featured demo, you will decide that ForexGen is the foreign exchange execution platform for you.
We also offer an introducing broker service for both small companies and individuals; this service has proved a popular and successful facility with our clients. The foreign currency trading conditions at ForexGen are among the best available online.
We offer highly competitive currency exchange rates and quotes for all our clients regardless of their trading capital. With instant execution, there's never been a better time to join the world of foreign currency trading. With our interactive website and regular updates you should have no trouble locating all your FOREX needs, be it services or information.
ForexGen LLC enjoys the reputation of being a reliable business partner and is successfully increasing our compliment of representatives and IBs world wide.
