Fundamental analysis in Forex
We will explain fundamental analysis from a Forex trading point of view. The currency market, also known as the Forex market, is a global market where currencies are traded. Currencies are important because we need them to buy goods and services locally and across borders. There is no central market for the Forex market. The forex market is the largest financial market in the world. It is even larger than the entire US stock market There are several participants with different currency trading purposes in the Forex market. Participants in the Forex market include banks, international companies, hedge funds, money managers, tourists, and individual investors.
Like the price of a stock, the price of a currency fluctuates every day. The price of a stock is often affected by the intrinsic value of the company and national economic conditions. However, the price of a currency is more affected by national economic conditions. Here is the list of economic variables that you should consider when trading the Forex market.
Economic indicator (for example, gross domestic product)
Employment indicator (for example, unemployment rate)
Inflation indicator (for example, consumer price index)
Central bank decisions and announcements
Changes in political and financial regulations
And so on
Watch the YouTube video for a full explanation.
Furthermore, we also have a more detailed explanation on this blog here.