The relations between the countries from the political conjuncture, which define economic development at macro level, all the dynamics that enable prices to move; It is the fundamental analysis of scholars who have studied all the changes leading to speculation from decisions on monetary policy to their reflection. The basic analysis, which is closely related to the country and world economy, tries to solve the uncertainties about the future by making the current economic developments on prices.
The position and role of basic analysis within Forex investment strategies are very limited to certain criteria. Serious academic training is required for any investor to be able to analyze and analyze information about the current dynamics of the economy on the world stage under normal circumstances. The location and importance of basic analysis techniques in many investment tools outside of Forex is widening. Bilancers, current situations, testing tools, and many fundamental analysis techniques are not the primary issues for the Forex market. Knowing the dynamics that describe the value of a country’s currency, especially when it can be invested in pairs, can often be the key to success in using the basic analysis efficiently.
Any instrument that can be used to analyze the interaction of a country’s currency with its own internal dynamics and other country’s money is a key to understanding the movement of prices in Forex markets. It may not be possible to follow any kind of data that may affect the country’s money. Because of the fact that many of the events that develop routinely every day are important to the prime minister’s health, Any development from a natural disaster to the marriage of companies can be found. Moreover, the projected developments may have different effects on the current conjuncture reflecting on prices.
For this reason, the fact that such economic and political developments, which come to mind as basic analysis, are followed up by a new investor in the market often can cause more confusion in their heads. If there is no specialist economy, then any investor will always be the recommended Economic Calendar when they want to follow the basic analysis method. The evaluation of economic calendar data, which is the most important part of basic analysis, is the starting point for investors who want to use basic analysis techniques in Forex markets.
Some reports that have a high impact and that clearly summarize the situation of the country concerned by numbers can have a great impact on the currency of the country. Especially developments in a currency that functions as a reserve currency can affect many parities. Investors who do not have sufficient academic comment on the effects of economic expectations and disclosures are often not recommended to take positions prior to such important economic developments. Because even experienced analysts can observe many inconsistencies with expectations of economic development on prices. However, high volume transactions and high price movements following the disclosure of the data can be dangerous and sometimes offer good investment opportunities. For this reason, monitoring and evaluating the time of the important economic calendar data will be a very important work for the fundamental analysis enthusiasts working on the Forex market.
Another development that may be of interest to Forex investors in the framework of fundamental analysis would be to explain the changes in the interest rates of countries in the central banks. Changing the interest rate of any currency can cause serious changes in the demand for money, which will inevitably change the currency value of the country. Because investors tend to invest in resources that will provide the most real returns to their money. Therefore, a deposit account that knows their high interest receivables to their money may start to attract more than the risky real sector. This shifting movement between the areas of the current money will definitely affect the value of the currency. In order to deliberately obtain all these and similar effects, central banks may resort to interest rate keying frequently within monetary policies. Interest rate changes that are important for Forex traders and their results have been reviewed in the Interest Rates section.