What is the meaning of foreign exchange fundamental analysis

Fundamental analysis of foreign exchange focuses on the development of financial economic theory and political situation to determine the supply and demand of foreign exchange and its impact on exchange rates. Fundamental analysis studies the causes of market movements, including analysis and research on macroeconomic indicators, asset markets and political negotiations. Macroeconomic indicators include economic growth rate, gross domestic product, interest rate, inflation rate, unemployment rate, money supply, foreign exchange reserves, and productivity indicators. Asset markets include stock market futures markets, bond markets, and real estate markets; political factors mainly include A country’s government’s trust, social stability, climate and confidence, etc. Sometimes, the government will intervene in the currency market to prevent the currency from deviating significantly from the ideal level. Intervention in the money market is executed by the central bank and usually has a significant but temporary impact on the foreign exchange market. Therefore, the purpose of fundamental analysis is to dig out the real reasons behind exchange rate changes and analyze the political and economic roots of short-term and long-term changes in exchange rates.

Which method is better or technical?

The technical side contains many genres, methods, techniques, and models, and no matter how good the fundamentals are, they are all subordinate to the technical side. They are all analyzed by momentum, so no matter which one you use, the most important thing is Can more accurately, concisely and clearly explain the trend, but any technology that can have this effect is the best.

The technical side contains many genres, methods, techniques, and models, and no matter how good the fundamentals are, they are all subordinate to the technical side. They are all analyzed by momentum, so no matter which one you use, the most important thing is Can more accurately, concisely and clearly explain the trend, but any technology that can have this effect is the best.

For most investors, whether they choose fundamentals or technical aspects, the most important thing is to be able to learn technology and learn good trending technologies. At the same time, they must also develop trending technologies and innovate trending technologies by themselves. As long as the technology is good enough, Then it is no longer difficult to make a profit in the investment market. Therefore, it is crucial for investors to understand the fundamentals and analyze the technical aspects. How to choose depends on the wisdom of the investors. Whether the fundamental method is better or the technical aspect is better. It also depends entirely on the investor’s own learning and cognition. Can bring profit to investors, so which analysis technique is good to choose.

For most investors, whether they choose fundamentals or technical aspects, the most important thing is to be able to learn technology and learn good trending technologies. At the same time, they must also develop trending technologies and innovate trending technologies by themselves. As long as the technology is good enough, Then it is no longer difficult to make a profit in the investment market. Therefore, it is crucial for investors to understand the fundamentals and analyze the technical aspects. How to choose depends on the wisdom of the investors. Whether the fundamental method is better or the technical aspect is better. It also depends entirely on the investor’s own learning and cognition. Can bring profit to investors, so which analysis technique is good to choose.