These Kinds Of Fundamental News

You ever try playing with pure technical analysis would certainly know that at certain hours and usually in the evening technical analysis often does not function properly. When all indicators are in favor that the prices will move up but the fact that all of a sudden the price down dramatically without any reason whatsoever.

In the first few months I Learn forex trading this is ever so often I've experienced. At certain hours it looks like prices are not following the laws of technical analysis and tend to move away in the absence of clarity. After studying for so long I finally understand that it turns out these factors exist at named psychology of the market or market sentiment or whatever his name but who called clearly influenced by news and rumors circulating in the market.

Fundamental analysis is the analysis of a special study of this kind of stuff. Basically the fundamental analysis combines news items in sectors of the economy, politics and security in a country and combine that with how the market reaction to the news was presented to be able to find out where the price is about to move.

Keywords of this analysis is on two words namely demmand and supply. Essentially the market makers are human, too. By measuring the more those who do purchase action (demmand) action or otherwise sell (supply) then we can know where prices will move. In a nutshell if demmand (Indonesian language this is a request. Still remember the school time in high school used to be?) increased while the supply remains so as the people in the motherland, the price will soon be creeping up. And vice versa when supply (offer) increased but then the price will keep demmand began to go down due to a lot of stuff floating around in the market. These two things are trying to be known by fundamental analysis.

Well since all of that is done by the market participants as well as the psychology of the masses, then it also applies in the forex world. When it comes to economic news such as that reported that the currency of a country will tend to weaken so fundamental analysis is responsible for analyzing news that will appear and then, if the news appears how it relates to the reaction of the market. Sometimes due to the market too often driven by emotion for a moment, without any economic news often happen action increase or decrease in the price of the currency. Usually this is due to shifts in supply due to demmand parties performing the action of certain purchases or sales in large numbers.

These Kinds Of Fundamental News

Ok, had already explained that in fundamental analysis the most instrumental factor was named as news. Most fundamental news that play a role in determining the ups and downs of the currency rate is economic news. Information such as the unemployment rate, consumer confidence index and the manufacturer or other similar news determines whether a currency will be strengthened or weakened precisely against other currency pairs.

Most of the news that boils down to the ups and downs of inflation in a country. In a situation where inflation starts to rise then the direction is usually the central bank will raise interest rates. A rise in interest rates in a country are usually temporary increase will be followed (however large) on its currency. Logically this can be caused because the banking sector also raise interest rates including rates on savings and deposits. This has sparked a growing number of funds collected in the bank so that the money in circulation in the market will be reduced. Law suits demmand supply when the supply is reduced then the prices will also be increased. Even if the banks in the countries in question were not involved with adjusting interest rates there is a psychology of traders and remains so. As a result they also undertook action buy which will cause increased demmand. It is becoming a kind of self-prophecy (the fulfillment of what was convinced by itself) will be what market trust.

In forex trading, UPS and downs of interest rates is a final decision where previously initiated by the inflation data at the level of the consumer and the manufacturer.There are dozens of fundamental news which could affect the future market movements. There are important fundamental news to note there are also fundamental news that is not necessary at all due to various factors. In this regard it is important to sort out the fundamental news is important and not important. It will we learn in the subsequent discussion, entitled "fundamental news filter"