Fundamental analysis
Fundamental analysis is very difficult, but rewarding at the same time. It is about analyzing varied economic indicators, authorities speeches and events. We at ExclusiveFX mastered this in our Fundamental Analysis Department.
The main difficulty for beginners is first of all deciding which economic numbers are prevailing over others. Imagine there is usually 5-10 economic releases a day. Which one will you chose? On every first Friday of the month, US Unemployment data is released, which influences trading for some time after the publications. 3 main releases on this day are unemployment rate, non-farm payrolls and average hourly earnings. Sometimes investors watch only non-farm result, on the other time they only look at unemployment rate. The point is that it is al relative which indicator is the most important on the day. It all depends on current economic climate, difference from the expected reading and other factors. We at ExclusiveFX monitor the market and we always know at which factor to look.
Sometimes one reading has different impact on the currency. For example in 2008, in times deleveraging, USD was perceived by investors as a safe asset, so very low reading of unemployment tend to strengthen USD. On the contrary in 2010, low reading on unemployment rate would weaken the USD, because investors expected Federal Reserve to ease its monetary policy basing on weak economic fundamental.
One event, the same reading, but different result! ExclusiveFX continues to observe markets and stands ready to take advantage of any favorable situation. On other occasions, small countries, such as Iceland in 2008 or Greece in 2010 influenced trading. In normal times investors don’t even pay attention to developments in such countries. You as an investor need to be aware of this phenomena.
We will decide whether it is economic release, or company results, or comments from the officials, bond auctions or other factors that will influence trading.
It is very difficult for a private person to follow all fundamental developments, because there is so much information in the market that it takes a team of trained professionals to monitor markets. We at ExclusiveFX have access to professional tools and services, not available to average investors, which gives us a competitive edge! We will share our analysis with you, as you will become our customer.
When you build a house, you don’t do it yourself, but you leave it for professionals. When you buy a car, it is build by professionals. You don’t grow the food you eat, you buy it from professional farmers. The same logic applies to trading, you don’t make trading decisions yourself, but leave it to us – Forex professionals!