
Fundamental Analysis Approach for Forex Trading!
md1fk1 Przesłąno 7 Sie in #Trading #Inflation #Gdp #Indicators #Economiccalendar #Fundamental Analysis #Interest Rate #Forex Trading #Economic Growth #Economic DataDefinition and Economic forecasting
- Fundamental analysis can be defined as the study of country’s economic and financial performance in order to determine the fair market value and future direction of its currency.
- Fundamentals focus on factors that determine exchange rates, such as countries’ economic health, political stability and environmental events.
- A popular way to gauge the health of countries’ economy is through looking at its economic indicators and data releases, which is why every trader should be familiar with them and how they influence the value of a currency.
- If the European economy is doing better/worse than American economy then we expect EURUSD price to go up/down.
- Our target is to evaluate how well the economies in question are doing, and find which currency will appreciate/depreciate.
- Interest Rates
- Inflation
- Gross Domestic Product – GDP
- Unemployment
- Trade Balance
Pic 1 - Major Indicators which can move the currency pairs
Interest Rates
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