Should You Use Fundamental Analysis With Your Forex Trading Strategies?

So should your Forex trading strategies include Fundamental analysis?

Does Fundamental analysis play a part in your trading system?

So, all of the developed countries (apart from the UK) are out of recession and recently the US has seen some very positive economic results. But how does that affect Forex trading strategies…in other words does a Forex trader really take  much notice?

Seeing as at a guess most Forex traders are concerned with price action and thats pretty much it, should we even bother about Fundamentals?

I used to trade UK FTSE 100 stocks and was always surprised to find that when a company released good profits and growth, why this news didn’t go hand-in-hand with an upwards rally (err…thats probably one of the reasons for moving over to trade the Forex – a market which does move!!).

It’s good to have an understanding of how the Forex market works. How the stability of a country’s economy, it’s attraction to outside investment and its growth will make a difference to the strength or weakness of a currency’s perceived value.

Afterall something is only worth what someone is willing to pay for it and I don’t think the Forex market is any different.

OK then…maybe at the end of the day price is all that matters. The Fundamentals will be absorbed into price action anyway with buying and selling sentiment  displayed on candlestick charts for all to see. Apart from the important employment and interest rate figures should Fundamentals take a back seat within Forex trading strategies?

How much notice to you take of the Fundamentals surrounding the Forex market? Do you factor economic results into your Forex trading stratgies?

Let me know what you think…

Good trading. To Your Success!

Best wishes

Annabel

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