Fundamental Analysis

Central banks are government agencies that control money flow in the economy.  These agencies have various tools to deliver their mandate, including rate cuts/raises and Open Market Operations (OMOs).  The trick is to make speculative statements and leave the interpretation of the market to the audience. As more investors react to the announcement, their actions … [Read more...] about All About Open Mouth Operations

The main hypothesis of Forex fundamental analysis is that the real value of a security may not match its price. Thus, the price may be incorrectly stated by several markets, but it gradually returns to the original price. The ultimate objective of fundamental analysis is to find out the original value of the security, weigh it up against the current price, and pinpoint an … [Read more...] about 2021 Fundamental Analysis Basics in Forex

You might have heard the term “Buy the rumor and sell the news” when conversing with other traders in trading circles or in educational resources focused on investing. It refers to the decision taken by the investor to acquire definite security based solely on rumors. The investor then subsequently sells it when positive news breaks out. It is a phenomenon that is noticed in … [Read more...] about Buy the Rumour, Sell the News in the Forex Market

Forex traders and central banks are always watchful of the rate at which prices rise in economies globally. Interest rates are what brings these two groups of people together. Inflation is a double-edged sword where a little bit of it is significant for economic growth, but too much of it is detrimental to the economy. Central banks base their interest rate decisions on … [Read more...] about Impact of National Interest Rates on Exchange Rates and Currency Values