Forex market analysis

To explain the true constant of the market situation and assess the actions and events that cause it is necessary to learn to read and analyze information from external sources. Prediction of currency fluctuations in the future, and two modes of analysis: fundamental and technical.

Let's see what keys each.

Fundamental analysis first

And based on this type of analysis on the political and economic news and its impact on exchange rates. It is a set of actions that can allow to estimate what it would price behavior of the Forex market. Based on this data is essential for countries that may affect the current currency operations in these processes. It is difficult to have a full analysis of the situation as there are many factors that can change the situation. In addition to the consequences of these developments may also differ among themselves. The mystery of technical analysis depends on understanding the impact of these events on the reference currency correctly. Among the fundamental analysis indicators are:

Interest rates of the central banks;

Economic policy of the state.

The political situation;

Economic growth characteristics;

The balance of trade indicators.

Inflation rates.

The solvency of the state.

Investor sentiment.

Competitiveness of products.

Consumer confidence;

State of the housing market;

State of the labor market;

Other indicators.

And fundamental analysis published in the form of indicators that can be reviewed and re-evaluated. When the estimated data, compared with the previous data and current generates a dynamic process where the data is analyzed several years ago. But it's not enough data so it is necessary to have the analytical skills that allow us to link information with their causes and consequences. This can improve the analytical skills with comprehensive training in them, allowing the investor to analyze the situation and make decisions quickly.