A comprehensive evaluation method can more objectively describe the situation on the currency market at the moment. Below you will find some useful practical advice on fundamental analysis based on economic indicators:
1. Calendar publication of leading economic indicators and statistical information agencies of the world should be required reading for each trader using fundamental approach. Good trading strategy is a step or even a half-step ahead of developments. Very often, the movement is the dominant trend in the wake of expectations out certain statistics.
2. Monitor the financial and economic indicators relevant to the majority of market participants in the currently recommended mandatory. They act as catalysts triggering dramatic changes in the movement of the charts. The classic example - the weakening of the exchange rate of the European Union will be a key indicator of inflation.
3. A successful trader is always aware of the majority of predictions about the movement of the market in the short, medium and long term. All suggested experts and analysts should be checked with the actual figures. This tactic is crucial, because sometimes the difference between the expectations of the market participants and the actual figure has, and this explains the seemingly inexplicable behavior of the graph of exchange rates.
4. Too hasty reaction to the news had not justified. After the publication of new data have been extensively investigated and reviewed and the current situation may change. Intently peering into the revised figures. They are often the key to predicting the future dominant trend. Moreover, in the future this experience helps a lot faster to navigate in unusual situations.
After reading these tips you may find that the principles of fundamental analysis are much clearer and easier. However, this is not the case. Analyze developments in the global economic community must be constantly, while comparing them with each other. Parallel should monitor the charts, if the relationship starts to track - you're on the right track.