FOREX THEORY
Here’s an Economic Report, Now What?
The market has a tendency to react based on how people feel.
These feelings can be based on their reaction to economic reports, based on
their assessment of current market conditions.
And you guessed it – there are tons of people, all with
different feelings and ideas.
You’re probably thinking “Geez, there’s a lot of uncertainty
in fundamental analysis!”
You’re actually very right.
There’s no way of knowing 100% where a currency pair will go
because of some new fundamental data.
That’s not saying that fundamental analysis should be
dismissed.
Not at all.
Because of the sheer volume of fundamental data available,
most people simply have a hard time putting it all together.
They understand a specific report, but can’t factor it into
the broader economic picture. This simply takes time and a deeper understanding
of the data.
Also, since most fundamental data are reported only for a
single currency, fundamental data for the other currency in the pair would also
be needed and would then have to be compared to get an accurate picture.
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