Understanding fundamental analysis and economic calendar:
Fundamental analysis and economic calendar and its importance in analyzing news and economic indicators, their types, and how they affect currencies and market movement, and forecasting all developments
Definition of fundamental analysis:
Fundamental analysis is the process of analyzing economic and financial data and information, with the aim of predicting the future economy of countries, and identifying the size of future risks that affect the supply and demand of a country's currency.
On the other hand, the fundamental analysis depends on the evaluation and understanding of currencies in their economy, with rates of interest, growth, inflation, unemployment and employment rates, which are affected by economic, social and political factors that increase the supply or demand for a particular currency and move its price.
The ultimate goal of fundamental analysis is to study the main factors behind influencing an economy or currency. This study usually attempts to predict market trends and potential changes that may occur in currency rates, by analyzing economic indicators and economic data in a country or group of countries.
The fundamental analysis technique is reflected in being a study concerned with microeconomic influences and its relationship to the economic and social influences of various countries, especially the extent of their influence on the currency of each country, which changes according to economic changes and important and influential political or social events. In order to keep abreast of these changes and to become familiar with the new ones immediately and in succession, traders rely on modern technology by surveying their information from specialized financial agencies that provide them directly with news from the trading platform, so they are aware of developments and the fluctuation of the currency price in the forex market, which enables them to benefit in making safe buying and selling decisions. It guarantees them a profit and avoids risking their money. However, these important events that are subject to fundamental analysis can be divided into two parts:
- Events that can be expected: They are the events that are related to a specific time and date, and are with prior and thoughtful planning, which are disclosed through news announcements, making it easier for traders to make their sound trading decisions.
Unpredictable events: such as sudden events occurring in the ruling regimes, political transformations, natural disasters, wars, terrorism and other decisive events that cannot be completely predicted, but which affect quickly and suddenly the currency market, which makes its reflection affect everything in an instant that may make you the loser The largest or vice versa.