Gaining an insight into the reasons financial institutions commit to buying/selling a particular currency pair is of great value for traders, as this knowledge enables traders to ride on the backs of these giants, and use the momentum this commitment provides, as an advantage. The following post presents some useful resources in regards to fundamental analysis, which can help keep you on the correct side of the market.
Fundamental analysis and why it’s important
Knowing where to go to learn about what the smart money is doing and why, is of tremendous value to traders. Financial institutions invest millions of dollars hiring economists and market analysts to help them gain an understanding of the global economy and how it is/could affecting/affect their investment interests. Macro- and micro-economics play a huge role in how and why regions, countries, and households are spending money, which in turn affects the price of e.g. commodities, stocks, and consumer goods, all of which either directly or indirectly have an influence on currency prices.
Fundamental analysis can be confusing
Understanding all of this information and how/if it will affect the market is no trivial task. Those who have an understanding and an interest in this area, have a great advantage, but for others who perhaps don’t have the necessary know-how required in order to perceive such matters, there is still hope.
Wouldn’t it be great if there were resources available to traders, which when read and understood, could enable them to make trading decisions in sync with dominat market drivers? As you may very well be aware of, such resources do exist, and many of which are free for picking.
Here is a handful of high quality resources, I frequently read to help give me an advantage.
- Danske Bank – Danske Markets Research (Technical & fundamental FX updates and forecasts)
- Nordea – Nordea Markets (Technical & fundamental updates and forecasts)
- International Monetary Fund – Data and Statistics (Fundamental updates and forecasts)
- Dukascopy – Market Research (Regional specific technical & fundamental FX updates and forecasts)
- MIG Bank – MIG Research Department (Daily technical reports)
- Wells Fargo – Foreign Exchange Commentary (Wells Fargo Commentary, research and white papers)
Fundamental analysis websites and blogs
- Saxo Bank – TradingFloor (Forex, Equities, and Commodities update by traders for traders)
- DailyFX – Site (Technical & fundamental FX updates and forecasts, charts, and much more)
- FX Street – Site (Superb resource for everything relating to FX)
- ForexPros – Site (Fundamentals, technicals, charts, and forecasts)
Fundamental analysis profiles
The market updates available via the resources listed as research, can be read on a daily, weekly, or monthly basis. I like to read Jyske Banks market updates each morning as well as Danske Banks Danske Daily and Danske Technical Update, and look for similarities between the two sources. I also always have a look at any new publications by Dukascopy, which are always informative reads. After having done this, I’ll have a good feel about what’s going on. There are other technical resources that I use, which I will cover in another post.
Subscribing to alerts and updates
I also have the four websites/blogs open all day and check them every hour or so for updates. There are a couple of traders I subscribe to via Saxo Bank’s TradingFloor site, which allows me to receive email alerts each time they post updates. This site I’ll normally keep my eye on throughout the entire day.
If you don’t already incorporate such resources into your trading, try some of the above mentioned resources out for a couple of weeks and see how you do. I wouldn’t spend hours each day on reading market updates, as this is not necessary. Sentiment is already in the market, on the higher timeframes. Keep your eye on the daily chart and you’ll have a good feeling of what’s going on, without having to delve into the details. If you see momentum (e.g. negative/positive divergence) slowing down on the daily, then something could be going on, so always start your analysis on the daily.
As this post will be updated frequently, if any readers have additional information, relevant to this topic, please let us know and we’ll be sure to review your suggestions.
Updated Wells Fargo link
Added Shraf Laidi to Individuals section
Added Wells Fargo commentary resource to list of resources.
Added ScotiaFX and MIG Bank to list of research resources.