Introduction to Macroeconomic fundamentals
How you answer the above question depends on how well you can decipher the macroeconomics that shapes the outlook. Macroeconomic fundamentals analysis looks at the underlying forces that are moving the markets in question and is generally used by long term investors, but can also be used by traders to gain an understanding of the markets they wish to trade.Combining fundamental analysis alongside technical analysis, which is the study of price, can be a powerful combination which will empower you as a trader and paints a complete picture of the markets.When using fundamental analysis, it is important to define the goals. Given the vastness and the complexity of the field, it is easy to lose focus or get sidelined by different factors.Therefore, the first and most basic step in fundamental analysis is to start off with a currency pair that you are interested in to trade. This will ensure that you stay focused on the most relevant details in order to help lay the groundwork for building a trading plan.So should you simply pick out a currency pair by rolling a dice or is there some logic to follow? While there is no rule and it is entirely up to the trader to start with a currency pair of their choice, it does make sense to stay relevant to the current markets.Example, what is the most talked about topic at the moment? Which currency or Central Bank’s policies are being constantly referred to in the markets? By picking the most trending instrument or asset, traders would be able to find more information and perhaps gain more knowledge by combining the technical and fundamental aspects involved.
Macroeconomic fundamentals influencing the markets
This article is available only to alvexo plus members, register now, and get 7 days of free membership.
You are a Member!
Your Alvexo plus membership is free only for one week, to extend the membership you need to deposit funds into your account and trade with alvexo
You're Membership is expired!
Your Alvexo plus membership is expired, to extend the membership and your financial knowledge you need to deposit funds into your account and trade with alvexo