Forex Fundamental Analysis is often a daunting topic for Forex traders and
let's be honest, it’s easier looking at some technical indicators, moving
average crosses, or Fibonacci retracements other 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
Elliot Wave theory or the notorious Neural Network based trading, and the
conclusion is that in order to master either Fundamental or Technical Analysis,
it'd require investments of both time and efforts…
That's Exactly why FundamentalForexOutlook. com was created, its objective is
to make the difficult task of forex fundamental analysis bearable for those
normal Forex trader, by offering you the right resources such as: breaking news,
commentaries, historical charts, and fundamental scores at your fingertips,
helping you make the suitable trading decisions.
Just Before we dive into the deep end, let us just take a moment to determine
the differences between Forex News Trading and Forex Fundamental Analysis,
simply because for a lot of people, they are one and the same, but that could
not be further from the truth. Here are some important distinctions:
1. News trading in a nutshell is trading based on surprises, it may or may
not have anything regarding 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 complete outlook of
particular currency according to its economical indicators( like GDP, CPI, PMI,
Trade Balance, etc…), monetary policy, and other breaking news that influences
the longer- term value of the currency, i. e. Outlook.
2. An Additional interesting difference between News Trading and Forex
Fundamental Analysis is News traders seldom think about prior releases unless of
course there are significant changes, but for fundamental analysts, prior
releases are starting points of evaluation, and a better than prior release
number is usually considered good, regardless of news release forecast… Surely
this may present some conflict with Forex news trading, but remember that
fundamental outlook is for the long- term; think of it as gravity, it’s always
there… Market may be pushed by other forces briefly, but it will eventually fall
back in direction of fundamentals.
3. Fundamental Analysis doesn't change often, and unlike news trading where
the market could end up volatile immediately aftera news release, fundamental
outlook keeps unaffected( most times) unless there's considerable facts both in
market sentiment and concrete economic data… The general rule is that unless
there are good reasons to change our view, we won't.
To summary it, by understanding the basic difference between Forex news
trading and Forex Fundamental Analysis and by utilizing FundamentalForexOutlook.
com, it can help you stay on the correct side of the market by giving you the
tools you need. You are able to trade currencies with powerful Outlook Score
against currencies with weak scores, particularly from a longer- term
standpoint. The advantage of the Outlook Score is when a foreign currency is
going against it, it normally will come back, giving you a chance to place your
longer- term trade depending on fundamental trend…
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