Investors and traders who have been in the forex market for a long time know the importance of basic Currency information. With the help of fundamental information and analysis, traders can easily transform them into orders.
That’s why the foreign exchange market (forex) is considered one of the most sensitive markets globally.
Two forms of analysis commonly used in the forex market are fundamental and technical.
So what are these two terms?
Fundamental analysis is about checking the intrinsic value of a stock and its application in forex.
It also consists of the financial statements, industry trends, ongoing events, and external influences. Factors like economic conditions affect the currency value of the country like the Eur in the United Kingdom.
Similarly, technical analysis is about predicting the price change of the currency.
It is used to identify the patterns and trends of future movements through technical tools, studies, and indicators. For example, for the British Pound Sterling (also known as Pound Sterling GBP), you have to know the Eur forecast. For that, visit capital.com.
Over the years, along with the governmental departments, the fundamental information is now also broadcasted by research institutions or associations with the influence on the EUR currency.
Today many traders trust these independent institutions as their predictions are pretty close to the announcements and charts.
Do you want to know more about fundamental information of the stock market as an investor or trader?
Today in this post, we’ve explained what fundamental information is and its impacts on EUR Currency. We’ve also included different types of fundamental and technical analysis and the Pound Sterling (GBP) history.
History of the Euro
Several attempts were made to form a stable joint European economy between different countries. Since the 1960s, this has been the major goal of the European Union (EU). However, this dream became a reality on 1 January 1999.
In 1957, the first attempt was made by the European Economic Community (EEC). Their main goal was the economic integration of six countries (Germany, Luxembourg, France, Italy, the Netherlands, and Belgium).
After the euro came into existence, it was not widely known for the first three years and was considered an invisible currency.
That’s because people only use this currency for electronic payments and accounting purposes. Later on 1 January 2002, Coins and banknotes were launched in the market of 12 EU countries.
Fundamental Information and Analysis
As we already mentioned, it’s important to know the fundamental information and analysis of the stock market. So how does fundamental analysis work, and how does it impact the EUR currency?
So basically, there are three sets of data are used to do fundamental analysis:
- Historical Data
- Public announcements about the company
- Other information.
Impact of Fundamental Information on EUR Currency
Many people rely on orders based on assumed price changes before the announcement of the fundamental information that appeared on the market.
For example, traders who are interested in Pound sterling currency can know more about the change in the currency value with the help of the EUR forecast.
You can calculate the price change just before the announcement of selected fundamental information. If you compare the data before and after the announcement of the fundamental information, you’ll notice that fundamental information has a significant impact on the currency’s value.
According to x-rates.com, on 21 July 2022, the Euro exchange rates of the top ten currencies are:
|Chinese Yuan Renminbi||6.901603|
To know the price prediction and EUR forecast, check out capital.com.
Today, many fundamental factors are responsible for the movement of the currency, such as
- Economic Indicators
- Retail Sales
- Gross Domestic Product (GDP)
- Industrial Production
- Consumer Price Index (CPI)
The Bottom Line
So now you know what foundational information is and the impact of the fundamental analysis on the EUR currency. Pay attention to the forecast numbers and check whether your expectations are met or not.
However, just don’t look for the numbers. You should also understand what factors affect the currency’s value as it will affect the nation’s economy.
So while investing and trading, you should always follow the fundamental information and pay attention to the price predictions. To know about the Euro forecast, visit capital.com.