Forex Fundamental analysis

Fundamental analysis is a way of looking at the market by analyzing economic and political forces, social, and other external events, and factors that may affect currency prices right now and might happen in the future. Financial and economic statistics, information about the economic course of the government, meetings and the interest rates of Central banks, possible political events in the country, as well as all kinds of expectations and rumours are the most important things in fundamental analysis.

All these events shape supply and demand that determine prices, or in our case, the currency exchange rate. Fundamental analysis can show you how and why some events like an increase in the unemployment rate affect the economy and monetary policy of the country, which ultimately affect the level of demand for its currency.

The main idea behind fundamental analysis is that if a country’s economic outlook is favourable, its currency should strengthen.

The fundamental approach allows analyzing both short- and long-term perspectives.


EURUSD dropped again. Overview for 21.01.2022

EURUSD got under local pressure; investors need “safe haven” assets.

The Pound is trying to rise. Overview for 20.01.2022

GBPUSD has climbed into positive territory; investors believe it may continue rising.

EURUSD was on the run. Overview for 19.01.2022

EURUSD had one of the worst trading sessions in recent times.

The Pound stopped falling. Overview for 19.01.2022

After a recent drawdown, GBPUSD is consolidating; the Pound badly needs support.

The BoJ disappointed the Yen. Overview for 18.01.2022

USDJPY has been rising for the second consecutive trading session; the Bank of Japan is not ready to act aggressively.

The “greenback” got support. Overview for 18.01.2022

EURUSD retreated to 1.1400 as soon as the US 10-year bond yield started rising.

EURUSD decided to wait. Overview for 17.01.2022

EURUSD stopped growing; the statistics failed the “greenback”.

Demand for the Yen is back. Overview for 14.01.2022

USDJPY is falling at the end of the week; the Yen is happy with the possibility of the rate hike.