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Module 2 - L'analyse Fondamentale en

The document provides an overview of fundamental analysis in Forex trading, focusing on key factors such as central bank interest rates, economic statistics, and current events. It explains how interest rates influence currency attractiveness and the importance of various economic indicators in assessing market conditions. Additionally, it highlights the impact of significant current events on currency exchange rates.

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Eric Vekout
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43 views

Module 2 - L'analyse Fondamentale en

The document provides an overview of fundamental analysis in Forex trading, focusing on key factors such as central bank interest rates, economic statistics, and current events. It explains how interest rates influence currency attractiveness and the importance of various economic indicators in assessing market conditions. Additionally, it highlights the impact of significant current events on currency exchange rates.

Uploaded by

Eric Vekout
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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FUNDAMENTAL
ANALYSIS
AT
TRADING
Xprience Module plan
Ltd.

1. What is fundamental analysis?


2. Central bank interest rates
TRAINING 3. Economic statistics
FOREX 4. Current events
TRADING
---
FUNDAMENTAL
ANALYSIS
Xprience 1. What is fundamental analysis?
Ltd.

• Fundamental analysis looks at the economic


fundamentals of Forex, i.e. the economic situation of
different countries.
TRAINING
FOREX • This is based on a number of factors, mainly :
TRADING
 Central bank interest rates
---
FUNDAMENTAL  Economic statistics
ANALYSIS
 Current events
Xprience 1. Central bank interest rates
Ltd.

• Central bank interest rates are the foundation of the


global economy. Central bank rates are used as the
basis for calculating borrowing rates for individuals and
TRAINING
companies, and this has a major influence on the
FOREX
TRADING economy.
--- • Controlling interest rates on the foreign exchange
FUNDAMENTAL
ANALYSIS
market is essential for a country's central bank in order
to implement its monetary policies.
• Interest rates have two influences on Forex: one short-
term, the other long-term.
Xprience 1. Central bank interest rates
Ltd.

Short-term influence:
• Interest rates also have a more direct influence on forex. When a
central bank's interest rate is high, its currency becomes more
TRAINING attractive because deposits in that currency earn higher interest.
FOREX • Conversely, low interest rates mean low returns on deposits,
TRADING
making it less attractive to hold the currency.
---
FUNDAMENTAL • In this context, an ECB rate cut, for example, will have a
ANALYSIS
downward impact on the EUR/USD at the time of the
announcement, as will a Fed rate hike.
• Conversely, an ECB rate hike will have a bullish short-term impact
on the EUR/USD, as will a Fed rate cut.
Xprience 1. Central bank interest rates
Ltd.

Short-term influence:
• It should also be noted that since currencies are

TRAINING quoted in pairs, we need to look at the rate


FOREX differential between the two currencies, the one with
TRADING
--- the better rate having a comparative advantage.
FUNDAMENTAL
ANALYSIS • Higher rates in the United States than in Europe
should therefore have a negative influence on the
EUR/USD, while higher European rates would benefit
the euro and therefore cause the EUR/USD to rise.
Xprience 1. Central bank interest rates
Ltd.

• However, rates are not changed often, so


traders also rely on other data to analyse
TRAINING and forecast currency movements. This is
FOREX
TRADING what we will look at below.
---
FUNDAMENTAL
ANALYSIS
Xprience 2. Economic statistics
Ltd.

• A huge number of economic statistics are


published every day: unemployment rate,
TRAINING GDP, manufacturing indices, industrial
FOREX
TRADING orders, consumer sentiment, etc.
---
FUNDAMENTAL • This means measuring all the factors that
ANALYSIS
have an influence on the economy. Normally,
if a statistic is satisfactory, it should benefit
the corresponding currency.
Xprience 2. Economic statistics
Ltd.

• It should also be noted that some statistics are more


influential than others. For example, weekly statistics
are less important than monthly statistics, which in turn
TRAINING
FOREX are less important than quarterly statistics.
TRADING • To find out whether a statistic is influential or not, don't
---
FUNDAMENTAL forget to consult your Forex economic calendar. We
ANALYSIS
would also draw your attention to the fact that the
publication of statistics generally leads to high
volatility. You should therefore be cautious about these
figures.
Xprience 2. Economic statistics
Ltd.

TRAINING
FOREX
TRADING
---
FUNDAMENTAL
ANALYSIS
Xprience 3. Current events
Ltd.

• Current events in this context represent various


political, social, environmental and other events that
can affect a country's economy or the global economy,
TRAINING
FOREX and consequently affect currency exchange rates.
TRADING • Examples include the trade war between the USA and
---
FUNDAMENTAL China, the Brexit in the United Kingdom, the corona
ANALYSIS
virus epidemic, and so on.
• By interpreting these news items, you can determine
their influence on the economy.
Xprience End of module
Ltd.

TRAINING
FOREX
TRADING
--- THANK YOU FOR YOUR ATTENTION
FUNDAMENTAL
ANALYSIS

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