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Fundamental analysis is one of the most complicated and at the same time critical methods of the Forex analysis. A special emphasis in this method is put on reports made by key persons of global economic arena. One of such persons is Mario Drahgi – the European Central Bank President.

Fundamental analysis of the Forex market in South Africa

Forex fundamental analysis is a complex and thorough method of predicting the situation on the international currency market. Unlike technical analysis, which takes into account only fluctuations in the exchange rate, fundamental analysis proceeds from the fact that many factors affect the value of a currency.

The results of the fundamental analysis of the Forex market in Africa and the conclusions of analysts will be useful for traders who trade currencies of African countries.

Complex of factors for fundamental analysis of the Forex market in Africa.

Fundamental analysis is carried out by leading analysts and experts of the Forex market in Africa. In order to make the most accurate and detailed forecast, they take into account a combination of factors. These factors can be divided into 4 groups:

  • Economic factors - the current economic situation, the forecast of growth or decline in GDP, trends in the main sectors of the economy in African countries;
  • Political factors - presidential and parliamentary elections, political scandals and confrontations, issues in international politics that may affect the countries of Africa;
  • Social factors – unemployment rate, public sentiment, population expectations;
  • Force majeure - natural disasters, wars, epidemics and other developments that can significantly affect the exchange rate of currencies of African countries.

After analyzing the whole range of factors, analysts make a forecast of the exchange rate of currencies of African countries. The accuracy of this forecast is very high for countries in which the political and economic situation is stable. Force majeure factors are the most difficult to predict in fundamental analysis. Natural disasters, social unrest, power grabs are hard to foresee. But these catastrophes greatly affect the exchange rates.

Benefits of Fundamental Analysis for Forex Traders.

Fundamental analysis of the Forex market in Africa will be useful for traders and investors. The conclusions and forecasts of experts will allow you to make the right decision to buy or sell a particular currency. After reviewing the results of the analysis, traders will be able to conclude profitable deals or get rid of the currency in time, the rate of which will soon begin to decline.

Also, forecasts and conclusions obtained by the method of fundamental analysis are necessary for investors. This forecast has the highest accuracy and reliability. It will be of interest to market participants earning on long-term investments at the currencies of the countries of Africa.

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EURUSD trading plan: Negative macroeconomic statistics from the United States could have a positive impact on the value of the euro. The third estimate of fourth-quarter gross domestic product showed that the economy grew at an annual rate of 2.2%, downwardly revised from a preliminary estimate of

GBPUSD trading plan: Investors can begin to take profits on short positions, which will have a positive impact on the value of the British currency today. Bad news from the United States will allow traders to sell the dollar before the weekend. For all of 2018, the economy USA grew 2.9%, despite th

USDJPY trading plan: Senior U.S. officials arrived in Beijing on Thursday for a fresh round of trade talks, which will be followed by a round in Washington next week. The optimism over progress in U.S.-China trade talks it has a positive effect on the value of shares in the United States. U.S. offi

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