Fundamental analysis is a major category, which focuses on market drivers and predicts basic economic trends and changes by analyzing a country’s macroeconomic situation.
Exchange rate fluctuations fluctuate, but all changes are inseparable.
Usually, when a country’s economy is strong, it goes up.
When the economy turns down, stability weakens, currencies depreciate and exchange rates fall.
As the currency of world trade and settlement, its ratio exceeds 50 percent, which determines the nature of the dollar itself as a hedge.
In the above, the US dollar has absolute dominance and superiority.
The impact of the situation on the market has also become a major force in the market.
Therefore, the economic data of the United States has become the most concerned data information.
There are many kinds of data and different levels of impact.
Summary data from strong to weak order: resolution, unemployment data, and industrial production, foreign trade, and producer price index, the consumer price index (cpi), the wholesale price index, retail price index, and consumer confidence, business sentiment, construction data, factory orders, personal income, car sales, the average salary, business inventories, leading indicators, etc.
If you understand this basic sequence, you can more clearly find the more noteworthy economic data.
Of course, this order is only a single dimension.
Markets are not so simple.
The impact of data will also change when market focus and market sentiment are different.
For example, when an economic data is significantly different from the expected value, its impact on the market will be amplified;
For example, until monetary easing is changed, more attention will be paid to data such as employment and inflation.
For example, during impact or large economic events, speeches by officials, institutional assessments and dignitaries will have a significant impact on foreign exchange markets.
Especially on the eve of important data releases, traders want more valuable information.
For economic data, sources of financial news can be obtained through financial websites, such as foreign Reuters, Wall Street Journal and domestic Golden Ten data, etc.
These websites will have economic data, indicators, announcements, announcements and timely information on major financial and economic events related to major currencies and energy.
In actual trading, it’s difficult to analyze all the data one by one, so we need to be aware of the changes in market focus and how the market reacts to the focus at that time. We have to make predictions and judgments before the indicators and data are released, and what trading strategies should be adopted before and after the data is released.
Therefore, certain economic theory knowledge is necessary.
Because policy makers often follow the same economic theory and logic.
Markets shrugged off the Fed‘s doubling, the dollar fell from a three-week high and gold rallied more than $20.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
