Fundamental analysis in Forex allows to analyze various messages rendered by global events. The major goal of the fundamental Forex analysis is to determine which events can influence international exchange rates. News about stock trading and large market‐makers, international exchange rates of central banks, economic policy of governments, changes in national political life as well as various rumors and expectations matter for this type of Forex analysis.
Fundamental analysis is one of the most complicated and at the same time crucial types of the live Forex analysis. Success of the Forex fundamental analysis lays in determination of a clear mutual relation between two national currencies. For that purpose, one needs to understand how relations between those two states develop, know history of currency exchange rates, be able to forecast a total result and find a relation between events seeming to be completely untied at the first sight.
EURUSD trading plan: The United States will release statistics on retail sales and industrial production today. We are expecting the release of negative data. The decline in household income is a negative factor for retail trade. Manufacturing expanded in May, as the PMI registered 52.1 percent, a
GBPUSD trading plan: Political risks are increasing. B. Johnson leads the election of Prime Minister of the United Kingdom. Johnson, the face of the official campaign to leave the European Union in the 2016 referendum, won the support of 114 Conservative lawmakers in the first round of the contest
USDJPY trading plan: Negative macroeconomic statistics from the United States on retail sales and industrial production may cause a decrease in the value of USDJPY in the psychological level of 108.00. American households are cutting their spending. This is a negative factor for the retail sector!