Understanding fundamental analysis
and economic calendar:
Fundamental
analysis and economic calendar and its importance in analyzing news and
economic indicators, their types, and how they affect currencies and market
movement, and forecasting all developments
Definition of fundamental analysis:
Fundamental
analysis is the process of analyzing economic and financial data and
information, with the aim of predicting the future economy of countries, and
identifying the size of future risks that affect the supply and demand of a
country's currency.
On
the other hand, the fundamental analysis depends on the evaluation and
understanding of currencies in their economy, with rates of interest, growth,
inflation, unemployment and employment rates, which are affected by economic,
social and political factors that increase the supply or demand for a
particular currency and move its price.
The
ultimate goal of fundamental analysis is to study the main factors behind
influencing an economy or currency. This study usually attempts to predict
market trends and potential changes that may occur in currency rates, by
analyzing economic indicators and economic data in a country or group of
countries.
The
fundamental analysis technique is reflected in being a study concerned with
microeconomic influences and its relationship to the economic and social
influences of various countries, especially the extent of their influence on
the currency of each country, which changes according to economic changes and
important and influential political or social events. In order to keep abreast
of these changes and to become familiar with the new ones immediately and in
succession, traders rely on modern technology by surveying their information
from specialized financial agencies that provide them directly with news from
the trading platform, so they are aware of developments and the fluctuation of
the currency price in the forex market, which enables them to benefit in making
safe buying and selling decisions. It guarantees them a profit and avoids
risking their money. However, these important events that are subject to
fundamental analysis can be divided into two parts:
- Events
that can be expected: They are the events that are related to a specific time
and date, and are with prior and thoughtful planning, which are disclosed
through news announcements, making it easier for traders to make their sound
trading decisions.
Unpredictable
events: such as sudden events occurring in the ruling regimes, political
transformations, natural disasters, wars, terrorism and other decisive events
that cannot be completely predicted, but which affect quickly and suddenly the
currency market, which makes its reflection affect everything in an instant
that may make you the loser The largest or vice versa.