On the outrights (ie the valuation of specific financial instruments) fundamental analysis is very important. Statistically, more traders use fundamental analysis to invest in the stock and bond markets. The Forex market is mainly used technical analysis. On the currency markets can be used high levels of leverage and therefore with little change course, the profits (or losses) for the trader may be significant. For the transactions in the forex market are often short-term. Fundamental analysis, therefore, the short-term investment decisions, has little effect. When making long-term investment decisions in the Forex market and the stock market, fundamental analysis can be crucial. Why is this happening? Answer can be simply recognized shortly. If the data is good, stocks go up, if the bad - stocks go down. Therefore trader operating on outrights can predict the future trend using fundamental analysis. On the calendar spreads situation is slightly different .
Spread (as discussed in previous posts) is composed of two outrights where one is sold and bought another. For this reason, it is difficult to assess the future price movements of spreads on fundamental analysis. If the fundamentals are good to spread will not necessarily be followed up (or down). It all depends on how the two outrights (on the same instrument, eg oil ) will behave with each other. If the trader intends to open long positions in fundamentals should look for correlations with outrights. You can find both positive and negative correlations. There are the markets where spread price is going in the same direction as the price of outright. Sometimes the price of outright grow and spread falls and vice versa. Depending on the market correlations are different. If you have important fundamental data to a market on calendar spreads can be noted another important relationship .
In this situation, there is usually very desirable on spreads markets - increased liquidity. If spread have low volatility (2 - 3 pips) and high liquidity related with fundamental data - in the day you can to turn the instrument a dozen or over a dozen times a day.
Following to the strategy that with such a small rang Trader invests a high lots - this is an opportunity to earn large amount of money.
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