Is foreign exchange fundamental analysis useful and how to look at the fundamentals correctly?

1. What are the fundamentals?

Fundamentals are a way to predict the future trend of a product by analyzing its supply and demand conditions and influencing factors.

2. Is it useful for basic face-to-face transactions?

The answer is definitely yes. However, it should be noted that although mastering fundamental analysis can be beneficial to the operation of the foreign exchange market, it is not possible to fully predict the direction of the market by mastering a large amount of fundamental information. In fact, the usefulness of fundamentals is only reflected in the impact on the flow of market funds, but it does not completely determine its flow. Because the most direct is the impact of market expectations on capital flows. This shows that only by investing funds in the market can expectations be reflected and market price fluctuations can be affected.

3. Get out of the wrong zone to know these

Fundamentals just provide an objective data to let you know the price movement of the market, but we usually cannot find the reason why prices rise and fall from fundamentals. Because prices rise and fall are affected by many factors. In addition, fundamentals are constantly changing. Future market prices are determined by future fundamentals, not current fundamentals.