How to conduct a fundamental analysis of foreign exchange rates

The foreign exchange rate refers to the exchange rate between two currencies and can also be regarded as the value of one country's currency against another. Specifically, it refers to the ratio or ratio of one country's currency to another country's currency, or the ** of another country's currency expressed in one country's currency. There are two main ways to analyze exchange rates:

Fundamental and technical analysis.

1. Fundamental analysis is the analysis of the basic factors affecting the foreign exchange rate, which mainly include the economic development level and status of various countries, the political situation of the world, regions and countries, and market expectations.

2. Technical analysis is based on the research methods and means of psychology, statistics and other disciplines, through the study of past exchange rates, to determine the future trend of exchange rates.

There are two ways to analyze exchange rates:

1. Fundamental analysis: Fundamental analysis is the analysis of the basic factors affecting the foreign exchange rate, which mainly include the economic development level and status of various countries, the political situation of the world, regions and countries, and market expectations.

2. Technical analysis is based on the research methods and means of psychology, statistics and other disciplines, through the study of past exchange rates, to determine the future trend of exchange rates.

Hope it helps.

1. Technical analysis is the sum of methods for foreign exchange investment by judging market trends and following trend changes. 2. Fundamental analysis. The method of analyzing macro factors such as economic, political, and social factors with the goal of judging the future trend of the foreign exchange market is called fundamental analysis.

Sentiment analysis is also known as psychoanalysis, and this emerging analytical method is based on ** theory. **The most direct manifestation is the investor's reaction to the market, which is reflected by the position status of each investor, which forms the market sentiment.

Foreign exchange is "a payment instrument for international transactions". Due to the inconsistency of the economic level and comprehensive strength of various countries, there is an exchange rate (that is, the exchange rate), for example, if the RMB is more than 6 yuan to 1 US dollar, then the exchange rate of RMB against the US dollar is about 1 to 6.

1. The basic analysis is mainly from the analysis of the basic factors affecting the foreign exchange rate, mainly including the economic development level and status of various countries, the political situation of the world, regions and countries, and the expectations of the market.

2. Technical analysis refers to the analysis method of determining the future trend of the exchange rate and determining the strategy of entering and exiting the market with the help of technical analysis tools according to the past performance of the exchange rate trend in the foreign exchange market. It is aimed at the future trend of market changes, with the graphics, charts, patterns, and indicators of market behavior (foreign exchange market and trading volume) as a means, and the analysis and research of market behavior using mathematics, statistics, and other theories.

But experienced foreign exchange investors are more admired for foreign exchange technical analysis, the reason is very simple, the factors that affect the exchange rate are ever-changing, and it is impossible for anyone to grasp all the information, and the market trend is inclusive and digests everything, so it is enough to study technical graphics, which is why technical analysis is popular in the foreign exchange market.

If you are doing long-term, the analysis of foreign exchange rates should pay more attention to the role of fundamentals, but if it is **, you can rely more on technical indicators, and one of the recommended methods is to find the general trend from fundamental analysis, and then look for trading points according to technical indicators.

I only know that the fluctuation of the exchange rate will have a great impact on the international **, but I think there are a few ** that are very good, such as the Financial Times Chinese website and the future banker.

Analyzing forex can start from two broad directions:

1. Fundamental analysis. It mainly refers to the analysis and judgment of the overall trend of foreign exchange from the macro level, and analyzes the economic, social, political and other aspects that affect the supply and demand of the foreign exchange market, which covers a wide range of information. In other words, you have to look at which country is doing better and which is doing worse.

The main idea of fundamental analysis is to use macroeconomic factors (e.g., economic growth, inflation, unemployment, etc.) to determine the future movement of currencies and study how they affect trading.

2. Technical analysis, also known as technical analysis, mainly studies the movement of **. For example, moving flats**, Fibonacci ratios, MACD indicators, etc. are all technical analysis. In simple terms, technical analysis is equivalent to studying charts.

The basic idea is to infer future movements by looking at historical movements. By looking at the charts, trends and patterns can be confirmed, providing trading opportunities.

Forex Beginner Lesson 2: Introduction to Forex Analysis Methods.

For foreign exchange analysis, whether it is fundamental analysis or technical analysis, both have their own limitations and disadvantages, so the two should be used in combination.

Fundamental analysis Fundamental analysis can be **to the trend, **arrival of the breakpoint), but can not provide a specific trading point, can not determine the specific risk, fundamental analysis for ordinary traders The biggest problem: can not obtain enough basic information to make an effective judgment for trading.

Technical analysis is the study of the ** itself, chart trends, patterns, technical indicators of technology. Technical analysis cannot reach the arrival of the trend or the arrival of the trend, but it can provide specific trading points (entry points, exit points) to determine specific risks.

We judge that the long-term trend of **first from the general trend is to go there, and then combine technical analysis to find specific entry points and position increase points, so that the analysis of foreign exchange can obtain better results.

The main focus is on the issuance mechanism of the renminbi and the formation mechanism of China's exchange rate. At present, the annual growth rate of M2 is 15%, and the issuance of currency depends on the needs of domestic economic growth, fiscal budget and other factors. The second is based on the exchange rates of several major foreign currencies and the exchange rates of developing countries that compete with China.

If too little money is issued, it will cause deflation, hot money will flow in, cause the exchange rate to appreciate, and affect exports. Too much hair may cause inflation and asset bubbles.

The two main methods of analysis of the currency market are fundamental analysis and technical analysis. Fundamental analysis focuses on financial, economic and political developments to determine supply and demand factors. Technical analysis observes** and volume data to determine how this data will move in the future.

Technical analysis can be further divided into two main types: quantitative analysis: using various types of data attributes to help estimate the limits of overbought and oversold currencies, and chart analysis

Use lines and graphs to identify significant trends and patterns in the composition of currency exchange rates. One of the most obvious differences between fundamental analysis and technical analysis is that fundamental analysis studies the causes of market movements, while technical analysis studies the effects of market movements.

When valuing a country's currency in another country's currency, fundamental analysis includes the study of macroeconomic indicators, asset markets, and political factors. Macroeconomic indicators include economic growth rates, which are calculated from factors such as gross domestic product, interest rate, inflation rate, unemployment rate, monetary volume, foreign exchange reserves, and productivity. Asset markets include**, bonds and real estate.

Political factors can affect the level of trust in a country**, the climate of social stability and confidence.

Sometimes, ** intervenes in the currency market to prevent the currency from significantly deviating from an undesirable level. Interventions in the currency market are carried out by ** banks and usually have a significant but temporary impact on the foreign exchange market. Banks can unilaterally buy and sell their own currency in another country's currency, or intervene in conjunction with other banks in order to achieve more significant results.

Alternatively, some countries are able to try to influence changes in the value of their currencies simply by issuing hints or threats of intervention.

Xihui International.

In general, you can't go wrong by doing things based on data

In terms of analysis, it is mainly fundamental and technical

When trading, the fundamentals are the mainstay, supplemented by the technical side, if the fundamentals are not very big or the fundamentals are very confusing, you can do it according to the technical side

The amount of news and data in the foreign exchange market every day is amazing, but no matter in the world, data is always the most powerful proof, and traders still focus on analyzing data when trading;

Amateur investors should be guided by technical trends, not simply understand the negative news, pay attention to medium-term investment, and do not have to indulge in ** in and out;

Combined with the U.S. index Bollinger day chart** to judge the trend 2 4-hour chart, draw the trend and resistance level, and finally use kd macd ** to find the entry and exit points, and set a stop loss with the resistance level drawn in advance.

Start by keeping an eye on a currency and watch the trend every day.