In order to make profitable trades, forex traders examine certain changes that could help them make gains out the most volatile market in the world.

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FUNDAMENTAL
ANALYSIS IN
FOREX TRADING

2. In order to make profitable
trades, forex traders
examine certain changes
that could help them make
gains out the most volatile
market in the world.

3. Forex analysis is so necessary to
complete the goals of making profits
Fundamental Analysis and
Technical Analysis are the two
important forex analysis, careful
study of which could result in
gains otherwise can lead to
losses.

4. FUNDAMENTAL ANALYSIS
It involves studying the economies of the world,
its official economic data reports and news to
determine the health of an economy, ultimately
the strengthening or weakening of the currency.
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5. It involves
analysing the
charts and
identifying similar
price trends that
have happened
before and
determine the
present and the
potential price
movement.
Technical
Analysis

6. When you make a fundamental
analysis, you would have to look into
the economic, social and political
situations of the economies, find the
answers and apply it to your decision
to place the trade.

7. Smart analysts already have a
consensus even before the reports are
released. Pieces of information on GDP,
Non-Farm Payrolls (NFP), Purchasing
Managers Index (PMI), Institute for
Supply Management surveys (ISM) and
inflation data are some of the major
fundamental indicators to decide on
placing a trade.

8. GDP that is reported quarterly for most
countries gives you an indication of which
direction the economy is moving and where
it may go in future comparing with the
previous quarters. It is useful for long term
traders.
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9. NFP RELEASED ON FIRST
FRIDAY OF EVERY MONTH CAN
PRODUCE EXTREMELY VOLATILE
MOVEMENT IN THE MARKETS.
WHILE SOME TRADERS PLACE
TRADES BEFORE AND DURING
NON-FARM PAYROLLS, SOME
TRADERS WAIT TILL THIS SHOCK
WAVES DIMINISH.

10. Purchasing Managers Index (PMI)
surveys in Europe & China and Institute
for Supply Management surveys (ISM)
surveys in the US release data usually
the first week of every month with a
varying day of the release in each
country.

11. These surveys tend to have
a close relationship with
GDP and are a timely signal
of the positive and negative
growth in an economy.

13. There are two types of inflation to look
out for –
Consumer Price Index (CPI)
Producer Price Index (PPI)
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