AMCCI Fundamental Analysis

The AMCCI fundamental section offers in-depth Forex and Commodities fundamental analysis reports by top analysts in the market. Each event that can influence the market is covered with an explanation about its potential effect.

What is Fundamental Analysis?

Fundamental analysis in Forex is market analysis which involves studying how the big political and economic events influence the currency market. Where technical analysis analyzes trends, fundamental analysis delves deeper into qualitative aspects, such as related economic, financial factors, economic health and macroeconomic factors. It involves the interpretation of statistical reports and economic indicators. For example, changes in interest rates, employment reports, and the latest inflation indicators.

Forex traders must pay close attention to economic indicators which can have a direct, and sometimes predictable effect on the value of a currency in the forex market. As these indicators can greatly influence exchange rates, it is important to know beforehand when they are due for release. The exchange rate spreads can widen during the time leading up to the release of an important indicator, adding to the cost of your trade.

Therefore, it is recommended to regularly consult an economic calendar which lists the release date and time for each indicator. Economic calendars can be found on Central Bank websites and through most brokers.