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Fundamental analysis

Stay in the loop regarding all financial market news

A key factor for success in your work on the Forex market is the analysis of economic and political news, in addition to financial statistics to give you precision forecasting of price movements for particular trading instruments. Different services which already sift out important news which could affect price movements on the Forex market are available to help traders orient themselves through the steady flow of information.

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  • Events’ calendar from FXStreet

    Indices, reports, central bank decisions and comments, research data and much more: everything which characterises the current economic health of the world’s leading countries in one calendar from FXStreet. You can set the calendar as you wish so you won’t miss releases of news that is important to you.

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  • News form FxWirePro

    Real-time economic news right in the platform. Nothing but information compressed into compact form! The settings allow you to create an individualised system of notifications.

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  • Macroeconomic indicators and indices

    Learn about key markets indicators, track their release and calculate the extent of influence they have. This will allow you to make currency price forecasts.

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  • Holiday schedule

    Nation states aren’t the only ones to take a break, so do their currencies. In order to forecast market volatility and to know when one or another currency is available for trading, one needs to take national holidays into account. You can see all of these holidays in our schedule.

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  • Interest rates

    Interest rates set by the national bank of a particular state have a significant effect on the national currency of the state. By knowing the dates when the banks consider changing the rates, you will be able to avoid working on the currency market during times of high volatility which is caused by rates rising or falling.

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How fundamental analysis works

In contrast to technical analysis, fundamental analysis is concerned with factors which are external to, but which have an effect on the market.
In particular, domestic and foreign policy and events, in addition to those of a social nature have an effect on financial markets.

In 2016, the results of the referendum in the UK to decide whether to remain or leave the European Union were unexpected even for many citizens of the United Kingdom, not to mention markets. This led to a sharp fall in the stock indices in the majority of countries in the world, including a fall in bank share prices. Moreover, the British pound and euro weren’t the only currencies to see a fall in value: other currencies from developing nations saw a fall, with the oil futures market returning to a bearish trend.

It would’ve seemed that a fall for the GBP and EUR in these circumstances would be predictable. As for the developing nations’ currencies, there is also logic – albeit less obvious – in their fall. For example, the 4.6% fall in the South African rand can be explained by the South African economy’s close links to the British economy. The fall of 3.6% for the Mexican peso is also unsurprising since the UK is one of the largest goods exporters to Mexico, along with Canada and the US. Major oil exporter nations also saw a fall in the value of their currencies as the value of oil fell.

As such, all news can be split into two categories:

  • Forecastable
    This concerns statistical data, the publication dates of which are known in advance; outcomes from central bank meetings and the comments from their representatives; in addition to speeches made by official state representatives.
  • Unforecastable
    Events which we cannot foresee: environmental and natural disasters; acts of terror and other catastrophes; etc.

By knowing what is going on in the world, you will always be up to speed with current events and, with time, will learn to quickly forecast the possible consequences of one or another piece of information which concerns financial markets.

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