Forex Analytics

Forex Analytics — is one of the most important tools necessary to trade on the foreign exchange market successfully. It allows you to obtain the following information:

• the current state of the foreign exchange market;
• possible changes affecting both the whole market and individual currency pairs;
• factors that can influence the state of the market.

Considering all, the data provided by the Forex analyst from the best analysts it is easier to make forecasts of market development independently. Such information is key when developing strategies for behavior on the currency exchange. It is included in the fundamental and technical analyzes.

COMPOSITION OF ANALYTICAL DATA

A competent Forex market analyst includes several components:

• daily reviews of the situation on the currency exchange;
• current trends assessment;
• forecasts of changes in trend direction;
• economic calendar;
• consultations given by the best analysts.

An important feature of the Forex market analytics is that the data provided by the experts have a certain justification. For example, a broker informs that soon the value of the ruble against the dollar will reach 58.8. Based on what information did the expert draw such a conclusion?

The cost of the Russian ruble largely depends on the prices set by the world oil market. Given the above forecast, analysts paid attention to the fact that Brent hydrocarbons cannot «break» the mark of $56 per barrel. In addition, the Ministry of Energy previously reported that the US has accumulated significant oil reserves in its storage facilities. In the end, if the ministry’s data prove to be correct, and the relevant US departments confirm them, the price of 1 barrel of Brent should drop to 54 dollars. This will lead to a decrease in the value of the ruble.

An additional impetus to the movement of the Russian currency will be the statement of the Federal Reserve on the ongoing monetary and credit policy. If the Federal Reserve refuses to lower the loan rate, the demand for US currency will increase. This means that the dollar will grow in value. As a result, this behavior of traders will affect all world currencies, including the ruble.

The above forecast focused on fundamental data that takes into account the impact of national banks on the Forex market (as in the example of the Federal Reserve) and trends in the hydrocarbon market.

It is important to remember that the Forex analytics is advisory in nature. The trader takes the final decision about its behavior on the currency exchange. Analysts are not responsible for the actions that players take on Forex.

ECONOMIC CALENDAR

The economic calendar is an important element that makes up the daily Forex market analysis. By analyzing it, you can find out about the nearest events that can affect the movement of trends on the stock exchange. The economic calendar carries useful information for all traders without exception, regardless of what tools they use to make profit: technical or fundamental analysis and so on.

The events represented in it are of a varied nature. For example, the economic calendar reports that at 22:00 Moscow time the Federal Reserve Chairman is going to give a speech as to what has the Federal Reserve achieved for the past half-year. Simultaneously with this information, the tool shows the degree of volatility of a particular currency. That is, he indicates whether a particular news will change the price set for the dollar, yen, ruble and so on.

In fact, the economic calendar is another tool for forecasting in the Forex market. It is useful when working on both short-term and long-term positions.

The economic calendar is also useful in that it provides an opportunity to determine in advance the likely direction of financial markets in the near future. It is important to note that such forecasts are compiled based on a fundamental analysis. It becomes difficult to use an economic calendar by traders who use technical means in a strategy development. In this case, the daily analytics from the world experts will be of great help.

WHAT FORM DOES THE ANALYTICS TAKE?

The nature of the presentation of Forex analytics largely depends on the approach of the company whose experts offer such information. It can include the following components:

• technical and fundamental analysis;
• experts’ opinions in the field of finance and stock markets;
• news directly affecting the currency exchange;
• actual trading strategies;
• reviews of events;
• forecasts and other.

Such analytics is convenient because it allows you to obtain comprehensive information about the Forex market, including information that can influence the value of the currency. For example, an accident at a large field will negatively affect the price of hydrocarbons. This event is highly likely to affect the yen. However, because of it, the price of ruble could fall if the accident occurred in Russia.

When making forecasts, experts often pay attention to the most influential countries. In particular, sharp fluctuations on Forex may take place on the eve of or after the publication of news from the Federal Reserve. Many experienced traders reduce their activity on the market until they learn about the behavior of the American regulator in relation to its currency and monetary policy.

Forex participants observe similar behavior as soon as the European and Chinese Central Banks release the new data.

Another important component of analytics is a survey of a variety of events. For example, Scotland has repeatedly tried to leave the UK. Surveys of news on this topic, citizen surveys and others show the current mood in society. Based on such data, it is possible to forecast the probability of increasing or decreasing confidence in the pound sterling by the world community.

Brokerage analytics is a convenient tool for traders. The latter cannot cover the entire amount of information that can affect the direction of the trend. Analytics, in turn, provides an opportunity to receive such information as a summary, which significantly reduces the amount of time spent necessary to develop a strategy of behavior in the market.

At the initial stage, this tool will create certain difficulties.  In some reviews of the Forex market experts advise buying a specific currency, and in others — hold or sell. The presence of opposing opinions can confuse an inexperienced trader. Therefore, it is important to develop a strategy of behavior on your own.

The situation in the foreign exchange market consists of a variety of circumstances, each of which is able to exert a certain influence. The thoughtless use of advice and data collected in daily analysis will lead quickly enough to large losses in trading on the stock exchange.