"Without a positive energy in your head don't involve in forex market Today"
What's you expect from your trading position....
Today, we can expect several indicators from the US economy, most of which according to forecasts are set to disappoint current USD trends. The day will begin with a speech by Federal Reserve Chairman Bernanke who is due to speak at the White House Initiative on Historic Black Colleges and Universities on the subject of education. In addition we can expect figures for Wholesales Inventories and IBD/TIPP Economic Optimism, both of which should hold little significance in how the markets move for the day. The highlight of the US news day will be the Pending Home Sales indicator, which is forecasted to show a drop-off of 1.2% since its last measurement. Based solely on the forecasts of today's fundamental indicators, one may assume that the USD will depreciate. However, as is the case with the greenback more than any other currency, when bullishness picks up steam it is very hard to bet against. Expect volatility in the market today, as behavior should keep the USD in range with yesterday's highs for most of the day...
Fundamental Analysis in The Forex Market
Fundamental analysis is considered to be the opposite of technical analysis, and both are used in the Forex market. Fundamental analysis considers the intrinsic value of an investment when making a decision as to its future activity. There are some who feel that this is an excellent method of making decisions in the Stock market as a lot of data can be gathered and studied concerning the value of a Company. But, they ask, how can a Nation have an intrinsic value?
The answer is fairly simple. The economy of a country goes through a basic business cycle, and there are a lot of indicators available to the investor to measure where a particular economy is at any given time. The analysis would involve matching the stage of the cycle with its impact on the value of its currency. The normal economic cycle consists of periods of inflation and deflation with peaks and troughs in between. Certain indicators such as the Gross National Product (GNP), and current prime interest rates can give a good idea of the stage of the economy at any given time.
Each of these indicators would tend to impact currency valuation in different ways, and sometimes would even vary from country to country. In the United States, rising interest rates are normally associated with currency deflation, for example, and it is factors such as this that are the heart of fundamental analysis. This analysis can become quite detailed, but the focus remains on the country and its economy. Every factor that impacts the country and its economy can play a role in the value of the currency, and understanding these factors are the tools the fundamental analyzers uses to guide their investment strategy.
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