Forex Trading Fundamental Analysis
- Announcement of Interest Rates
- Gross Domestic Product (GDP)
- Consumer Price Index (Inflation) and Expenditure Indicator
- Employment Indicators
- Retail Trade and Consumer Confidence
- Surplus or trade balance deficit
- Government Fiscal and Monetary Policy
Advantages of Forex Fundamental Analysis When Running Forex Trading
- By doing fundamental analysis, we will know the data from the intrinsic value of a trading or investment instrument, especially in this case is a currency. And the data in the form of this value can be used to decide when the time is to enter and exit the market.
- By knowing the data of economic indicators, we will be able to identify several investment opportunities that exist within a country that can be run either in the short or long term.
- By knowing the values of economic indicators, we will also become aware of the health conditions of the state finances in real terms, whether the country’s financial condition is in a strong condition or vice versa, so that we as forex traders can project how the economic growth projection is in the future.
But also keep in mind that even though we have been able to master forex fundamental analysis it does not mean we can get a guarantee to always benefit when running this business because forex fundamental analysis still has a weakness that we need to understand. The weakness of the forex fundamental analysis that is meant is that the data we use as an analysis calculation is past data and some of our own assumptions about the data. So if in the future there is a change in government plans, natural disasters, or a market bubble that all of these factors cannot be predicted, then we as forex traders may get losses.
But we as forex traders need not worry because even though we already know that the name of forex fundamental analysis still has weaknesses because of using past data but at least we can still try to cover up these weaknesses by doing technical analysis, huh! although technical analysis also uses past data, as comparative data when making decisions and we can apply the name risk management .
Although the name of forex fundamental analysis still has weaknesses does not mean that weakness makes us not use it. Why ? because the name of certainty in any business is uncertainty itself!