What should be paid attention to in the fundamental analysis of foreign exchange?

The core of foreign exchange fundamental analysis is to focus on economic, social and geopolitical events and trends that may affect the supply and demand of a single currency and the value of a national currency. But it is worth noting that these events and factors tend to have a broader influence, not limited to a single country. They may be important events that affect the entire region or group of countries, and even some events, such as the spread of Covid-19, can trigger a global chain reaction.

At a time of global crisis, currencies considered "safe havens" (such as the Japanese yen and Swiss francs) are highly favored for investors and traders seeking financial security. On the contrary, when emerging countries in a certain region usher in a period of prosperity, the currencies of these countries will also appreciate accordingly, attracting investors and traders to pursue new growth opportunities.

In addition, regularly released macro data is also a key factor affecting the value of currencies in various countries. These data are regularly released by governments, and traders can track this data through various macroeconomic calendars, such as the Eagletrader Economic Calendar, in order to prepare for possible short-term fluctuations in the market.