Forex for Beginners part 2
Forex Fundamental Analysis
Fundamental analysis is the process of market analysis which is done regarding only "real" events and macroeconomic data which is related to the traded currencies. Fundamental analysis is used not only in Forex but can be a part of any financial planning or forecasting. Concepts that are part of Forex fundamental analysis: overnight interest rates, central banks meetings and decisions, any macroeconomic news, global industrial, economical, political and weather news. Fundamental analysis is the most natural way of making Forex market forecasts. In theory, it alone should work perfectly, but in practice it is often used in pair with technical analysis. Recommended e-books on Forex fundamental analysis:
- Reminiscences of a Stock Operator
- What Moves the Currency Market?
Forex for Beginners part 1
If you've already read the "What is Forex?" section then you should know what Forex market is and what it is all about. If not, please, do it. There are five essential aspects of foreign currency market a beginner trader (and an old one as well) should be aware of:
1 -Forex Fundamental Analysis
2 -Forex Technical Analysis
3 -Money Management
4 -Forex Trading Psychology
5 -Forex Brokerage
Understanding and mastering these aspects of trading are crucial to organize your Forex trading experience.
Swiss Franc to achieve positive progress in the world of currencies
The Swiss currency reached a new all-time record against the US dollar and did well against the other major currency pairs today, as the market participants continued to base their positions on the positive monthly outlook report released earlier by the central bank of Switzerland.
The franc rose against the US dollar, breaking the record high level set on April 21 — the USD/CHF pair is in a constant bearish wave since June 2010. The Swiss franc also gained against the euro, following 3 days of rather directionless trading, and also outperformed the Japanese yen today. Traders are reacting to speculations that the country’s monetary policy may be tightened soon.
Swiss National Bank has released its April 2011 monthly statistical bulletin 4 days ago, demonstrating optimism in the country’s economic development. At the same time, the country’s main danger is still presented by the over-appreciation of the currency, which may keep the bankers from raising the interest rates soon. Nevertheless, the currency traders are using the current sentiment as a reason to continue buying francs.
USD/CHF fell from 0.8852 to 0.8805 as of 16:08 GMT today, reaching the lowest point at 0.8772 earlier — the new record low for the pair. EUR/CHF declined from 1.2888 to 1.2836, while CHF/JPY rose from 92.38 to 93.00 today.
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U.S. dollar an essential factor in the face of risk events coming days,
U.S. dollar an essential factor in the face of risk events coming days,
The dollar continued to drift ahead of Wednesday’s Fed interest rate decision where the central bank will embark on a new medium of communication with financial markets. Early in the session, the greenback saw some brief support as traders shed dollar short positions and commodities weakened. A weaker than expected print on March home sales also dented risk appetite, providing some lift for the battered dollar.
With Wednesday’s Fed interest rate decision looming, the dollar index continued to trade just above the multi-year lows seen last week at 73.73. Price volatility remained subdued today with most European markets closed in observance of Easter. Interim support for the greenback rests at 73.80, with a break targeting the 100% Fibonacci extension taken from the 2009 and 2010 crests at 73.32. Topside resistance is eyed at 74.30 backed by 74.70 and the 75-figure.
Aside from Wednesday’s domestic calendar, the dollar remains vulnerable to economic data out of Europe with the EU 2010 government debt-to-GDP ratio release tomorrow. The report could highlight further weakness in the periphery nations, bringing the sovereign debt crisis back into focus. Event risk for the dollar continues to mount on Wednesday morning when the UK reports on Q1 GDP figures. A stronger than expected print would put pressure on the MPC to move on rates sooner than anticipated, adding further downside for the dollar.
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