Advanced fundamental analysis is essential for understanding currency movements, focusing on key economic indicators. Gross Domestic Product (GDP) reflects economic health; strong growth typically strengthens a currency, while weak growth can weaken it. Employment reports, like Non-Farm Payrolls (NFP), indicate job market health, influencing currency strength based on job creation and wage trends. Inflation indicators (CPI and PPI) impact price stability and monetary policy. Interest rates set by central banks directly affect currency value, with higher rates attracting capital. Trade balances reflect economic transactions, influencing currency valuation based on surpluses or deficits. Geopolitical events and economic policies also play a significant role. A comprehensive analysis of these factors, combined with technical indicators, enhances trading strategies.
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