On the previous lessons you learned what the market Forex, as well as on participants, time and place of trade in Forex, that is Margin trading and what is its mechanism. Hopefully, you already have to understand something, and very soon you will understand the features of Forex market is not worse than the experienced trader. So, go on ...Analyst forecasts and the Forex Market
Analyst forecasts and analyst considers forexForeks News Forex, international developments, economic performance, statements of political leaders that are difficult to predict.
InsideWeb published hundreds of analytical reports and trading recommendations (daily forecasts, monthly forecasts of the market Forex). Forex analysis, forecasts, Forex reviews by leading analysts of the world and trading recommendations to help you navigate the Forex market at the current time and make the right decision.
Before taking any decision in Forex, should always be carefully and quickly analyze the situation on it. First of all, you need to know that the exchange rates of currencies affect three groups of factors:
fundamentals;
technical factors;
unexpected short-term factors.
Fundamental analysis studies the behavior of prices at the macroeconomic level, depending on the fundamental factors and indicators. He emerged with the development of applied economic science, and it is based on knowledge of the macroeconomic society and its impact on price dynamics. In world currency markets, where 80% of operations carried out with the U.S. dollar, the biggest impact these have on the U.S. economy, which leads to an increase or decrease in the dollar against other currencies.
Fundamental factors - are key macroeconomic indicators (indicators) of the state of the national economy, affecting the level of the exchange rate and foreign exchange market participants.Fundamental factors that affect exchange rates:
economic growth (GDP, industrial output, etc.);
the trade balance, the degree of dependence on external sources of raw materials;
level of real interest rates;
inflation and inflation expectations;
monetary growth in the domestic market;
unemployment;
solvency of the country;
confidence in the currency in the world market, etc.
For other factors affecting the formation of the exchange rate, include the following: forecasts made on the basis of charts and technical analysis, as well as political and psychological factors.
The state has always stands behind the currency, and this is without a doubt, is important. An important factor in determining the current situation in Forex, is the movement of capital between nations. First, foreign exchange control of the state keeps citizens from acts that could adversely affect the price (for example, transferring money abroad). Secondly, the state exercises its influence through a so-called intervention. Intervention - is the sale or purchase of currency in order to increase or, conversely, to lower its price in the market Forex.
All these factors can lead to sudden and dramatic turn of the market if they contain anything unexpected and significant changes. The activities of currency traders themselves as having a significant impact on the movement of the market Forex.
Recently, Forex traders have started to pay attention to such sources to compile Forex forecasts and price movements in the forex market, as news of the purchase or merger of large companies and corporations internationally. Also became interested in the flow of foreign capital and investments from other countries.
A trader should focus on the expectations and market sentiment by analyzing situations from the publications, the study reviews the state of the market in information systems Reuters, Bridge (Dow Jones), CQG. All information is gradually emerging in the model of various behaviors of the course after the publication of economic indicators.
The task of the trader is to join the movement of the exchange rate dictated by the greater part of the market, or as they say, "jump into the boat» (don't miss the boat).