The Impact of Fundamental Information on EUR Currency - Evidence from the Market

Investors, and especially daily traders, follow announcements of the fundamental information and transform them into the orders, what makes the Forex market one of the most sensitive market worldwide. In addition to “classical” economic information published by government institutions, there is also a set of fundamental information, announced by independent institutions, which over time gained the trust of traders and their announcements significantly affect the spot value of the currency. In the five years period we have observed the expected and the real value of fundamental information, generally termed as information with the High Impact. Research covers quantitative fundamental information announced by governmental departments as well as fundamental information announced by associations or research institutions with the influence on the EUR currency. Market reaction and change of value is monitored on the main currency pair EUR/USD. The paper discusses coverage area, periodicity and potential impact of the selected fundamental information and according to the observations, the tangible reaction of the traders and through the reaction, the real impact of these fundaments on the currency. At the end of the paper findings from the market and reliability of the each of the selected fundamental information is discussed.