Using data analysis to speculate on foreign exchange |Foreign exchange foundation

The strength of a country's currency will ultimately reflect the quality of its economic situation, which means that foreign exchange trading cannot avoid economic fundamentals analysis, and investors need to work hard in this regard.


There are many data that reflect a country's economic situation, except forGDPIn addition to economic growth rate, it also includes trade deficit, budget deficit, money supply, and consumer price index(CPI)Producer Price Index(PPI)Unemployment rate, housing construction rate, etc. As the focus of fundamental analysts, various data will be regularly released by relevant government departments,foreign exchangeInvestors should pay attention to collecting and analyzing various types of data for analysis and comparison, as a basis for determining the future trend of each currency.


Fundamental analysis has a significant impact in the foreign exchange market. After the publication of economic indicators, the currency trend is influenced by them, and the strong may be stronger or weaker; The weak may be weaker, or they may become stronger. So regardless of the accuracy of basic analysis in predicting future trends in the currency market, fundamental analysis has long been the main basis for investment decisions by market participants.


The fluctuation of foreign exchange rates, although ever-changing, is ultimately determined by supply and demand, just like other commodities. In the international foreign exchange market, when there are more buyers than sellers of a certain currency, buyers compete to buy, and the buyer's power is greater than the seller's power, the price will inevitably rise. On the contrary, when sellers compete to sell a certain currency and the market forces of sellers have the upper hand, the exchange rate will fall.


Attachment: Five major factors affecting exchange rate fluctuations


1、 Macroeconomic data, such asGDPThe better the economic situation reflected by employment and real estate data, the stronger the exchange rate;
2、 Interest rates, inflation rates(CPI)When the economy is good, the higher the interest rate, the stronger the exchange rate; On the contrary, when the economy is poor, the lower the interest rate, the stronger the exchange rate;
3、 A country's foreign trade situation, a surplus will drive the appreciation of its own currency;
4、 Some policy factors, such as national policies and intervention from central banks;
5、 Sudden events, such as war, terrorist attacks, etc., in the United States911Terrorist events such as the London Underground attack have caused a sharp drop in the exchange rates of the US dollar and the pound.
These factors require close attention from investors when investing in foreign exchange.

Thank you for your continuous support

GKFX PrimeSupport and Trust

If you would like to learn more detailed information

You can contact us through the following methods

We will wholeheartedly serve you

Telephone:15801181351

QQ: 2220083555

mailbox: eddy.zhao@gkfxprime.com

Scan code to add customer service WeChat