Since stockmarkets began there have been two schools of thought: the 'technical analysts' (chartists) and the 'fundamentalists'. The chartists have relied on complex modelling systems, retracement models, Fibonacci series, encyclopaedic numbers of different averages and even in extreme cases 'financial astrology charts'. On the converse, fundamentalists have looked at news and actual financial facts relating to the asset class - Warren Buffet one of the most famous alumni of this school of thought.
Economics tells us that a graph of any assets price over time, is simply an image of information flow (news) relating to the asset coming into the market. Speculators, investors and insurers all act on information. Technicals could have the most value in markets with little or irregular news, where investor psychology, and concepts like psychological support barriers carry more weight. A savvy investor will utilise a combination of fundamentals combined with technical analysis - to ignore important news is suboptimal, but technical analysis can provide insights to market-player behaviour.
In terms of key fundamental data releases this week, the main focus will be around GDP levels. UK, US and Canada will all release their gross domestic product, a key measure of the output of the economy, and indeed the strength of any recovery. To keep up to date with all the latest new releases we recommend our economic calendar as a great tool for scheduling your trades and manufacturing trading strategies.
All related crosses to the USD, CAD and GBP will be impacted, but the actual pairs such as Cable and USD/CAD will be most effected by this news.
Cable currently trades at 1.6058 so far this session, just 6 pips up from the open, while USD/CAD is trading at 1.0623, for a change of -8 pips this session.
Economics tells us that a graph of any assets price over time, is simply an image of information flow (news) relating to the asset coming into the market. Speculators, investors and insurers all act on information. Technicals could have the most value in markets with little or irregular news, where investor psychology, and concepts like psychological support barriers carry more weight. A savvy investor will utilise a combination of fundamentals combined with technical analysis - to ignore important news is suboptimal, but technical analysis can provide insights to market-player behaviour.
In terms of key fundamental data releases this week, the main focus will be around GDP levels. UK, US and Canada will all release their gross domestic product, a key measure of the output of the economy, and indeed the strength of any recovery. To keep up to date with all the latest new releases we recommend our economic calendar as a great tool for scheduling your trades and manufacturing trading strategies.
All related crosses to the USD, CAD and GBP will be impacted, but the actual pairs such as Cable and USD/CAD will be most effected by this news.
Cable currently trades at 1.6058 so far this session, just 6 pips up from the open, while USD/CAD is trading at 1.0623, for a change of -8 pips this session.
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