Forex fundamental analysis tools

Forex Fundamental Analysis is usually an intimidating subject for Forex traders and let’s face it, it’s much easier to look at some technical indicators, moving average crosses, or Fibonacci retracements rather than “reading between the lines” on Bernanke’s 22-minutes speech and make split-second trading decisions.

But the same could be said about Technical Analysis methods such as the Elliot Wave theory or the infamous Neural Network based trading, and the conclusion is that in order to master either Fundamental or Technical Analysis, it would require investments of both time and efforts…

The Differences Between News Trading And Forex Fundamental Analysis

The Differences Between News Trading And Forex Fundamental Analysis(Courtesy of HenryLiuForex.com)

http://www.fundamentalforexoutlook.com/





That’s why FundamentalForexOutlook.com was created, its goal is to make the daunting task of Forex fundamental analysis bearable for the average Forex trader, by providing you with the right tools such as: breaking news, commentaries, historical charts, and fundamental scores at your fingertips, helping you make the right trading decisions.

Before we dive into the deep end, let’s just take a second to define the differences between Forex News Trading and Forex Fundamental Analysis, because for a lot of people, they are one and the same, but that couldn’t be further from the truth. Here are some important differences:







1. News trading in a nutshell is trading based on surprises, it may or may not have anything to do with fundamental analysis, as it is primarily based on the market perception and psychology by comparing the forecast/actual releases at the time. But Forex Fundamental Analysis accounts for the overall outlook of particular currency based on its economic indicators (such as GDP, CPI, PMI, Trade Balance, etc…), monetary policy, and other breaking news that affects the longer-term value of the currency, i.e. Outlook. 2. Another interesting difference between News Trading and Forex Fundamental Analysis is that News traders seldom consider prior releases unless there are significant revisions, but for fundamental analysts, prior releases are starting points of comparison, and a better than prior release figure is usually considered positive, regardless of the news release forecast… Of course this may present some conflict with Forex news trading, but just remember that fundamental outlook is for the long-term; think of it as gravity, it’s always there… Market may be driven by other forces temporarily, but it will eventually fall back in the direction of fundamentals.









3. Fundamental Analysis does not change often, and unlike news trading where the market could become volatile immediately after a news release, fundamental outlook remains unchanged (most times) unless there are significant evidence in both market sentiment and concrete economic data… The rule of thumb is that unless there are reasons to change our view, we don’t.

In conclusion, by understanding the basic difference between Forex news trading and Forex Fundamental Analysis and by using FundamentalForexOutlook.com, it will help you stay on the right side of the market by giving you the tools you need. You can trade currencies with strong Outlook Score against currencies with weak scores, especially from a longer-term point of view. The advantage of the Outlook Score is that when a currency is going against it, it usually will come back, giving you a golden opportunity to place your longer-term trade based on fundamental trend…







Forex fundamental analysis tools

Economy & Finance

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