Fundamental analysis is a method used to assess the intrinsic value of currencies in Forex trading by examining economic, political, and social factors. Key components include economic indicators like GDP, interest rates, inflation, employment data, and trade balances. Strong GDP and favorable interest rates generally strengthen currencies, while high inflation can weaken them. Central bank policies and political stability also significantly influence currency values.
Market sentiment and global events can lead to fluctuations, making fundamental analysis crucial for informed trading decisions and long-term strategies. Combining it with technical analysis provides a comprehensive approach to navigating the Forex market.
Sub-course | Link |
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Economic Indicators: GDP, employment reports, inflation | View Course |
Geopolitical Events: Impact on currency markets | View Course |
Role of Central Banks: Interest rates, monetary policy | View Course |
What is Fundamental Analysis? Overview and importance | View Course |