How To Analyze The Trend Of Foreign Exchange

Here world clothing shoes The Xiaobian of the hat net tells you how to analyze the change of foreign exchange.

For investors who frequently invest in foreign currencies, exchange rate fluctuations are the core issue in foreign exchange transactions. Therefore, whether the novice investors can accurately predict the exchange rate by using the information available in the good hands is the key for investors to make money in the foreign exchange market. However, the factors that affect the exchange rate are intricate, which often make beginners confused. Here, we will briefly analyze the factors that affect the trend of foreign exchange rate.

For the current foreign exchange market, there are two main analytical methods, namely, fundamental analysis and technical analysis. Fundamental analysis focuses on the development of finance, economic theory and political situation, thereby judging supply and demand factors. The fundamental analysis is a macroscopic trend, and some market fluctuations are not ruled out. The technical analysis is mainly to observe the price and volume data, so as to determine the trend of these data in the future. Compared with the macroscopic analysis of the fundamentals, technical analysis is the trend of microcosmic trend. The most obvious point of fundamental analysis and technical analysis is the fundamental analysis of the causes of market movement, and the technical analysis of the effect of market movement.

　　 So which of the two foreign exchange analysis methods is better?

As we all know, currencies in foreign exchange transactions are all international currencies. When valuing a country's currency in another country's currency, the fundamental analysis includes the study of macroeconomic indicators, asset markets and political factors. Macroeconomic indicators, including economic growth rates, are calculated by gross domestic product, interest rate, inflation rate, unemployment rate, money supply, foreign exchange reserves and productivity. Sometimes, the government intervenes in the money market to prevent the currency from deviating from the ideal level. Monetary market intervention is carried out by the central bank, which usually produces significant but temporary effects on the foreign exchange market. The central bank can take unilateral intervention or joint intervention with other central banks in order to achieve a more significant effect.

In addition, due to international influence foreign exchange The factors of market trend are very complex. Therefore, no matter fundamental analysis or technical analysis, they are not omnipotent. Some studies show that in the foreign exchange market, fundamental analysis is more effective in predicting long-term trends (over 1 years), while technical analysis is more suitable for shorter time frames (0 to 90 days), and short term forecasts are more accurate. Experts suggest that the combination of the two methods will be most suitable for 3 months to 1 years.

foreign exchange Investment If a friend wants to get an ideal return, he must learn some necessary analysis methods, not only the basic analysis, but also some foreign exchange technical analysis knowledge. Raising their level is the magic weapon of foreign exchange investment and profit.