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Thread: What is Fundamental Analysis?

  1. #1
    Join Date
    Aug 2014

    Default What is Fundamental Analysis?

    What is Fundamental Analysis?
    What is Fundamental Analysis?-fundamental-analysis-png
    Fundamental Analysis
    Fundamental analysts base their trades on a countries economic strength. Economic news can often have a large impact on price. You can keep track of economic news releases by using a Forex calendar.

    Fundamental analysis uses economic data to predict moves in currencies. By interpreting economic data, you can gauge the strength of a countries economy. For example, if Europe has a strong economy and the U.S. has a weak economy, a fundamental trader might go long. This is because the trader expects the Euro to rise in value against the Dollar.

    Fundamental traders tend to hold trades for weeks, or even months. This is because economic factors don’t usually cause immediate spikes in currency value. A good example of this is interest rates.

    One of the most important economic indicators for fundamental traders are interest rates. Countries with high interest rates are attract more foreign investments. If you had a choice to invest your money at a 0.5% interest rate or a 5% interest rate, you would obviously pick the 5%.

    Over a long period high interest rates cause a currencies value to rise as people invest in the currency. So, if the U.S. had a 1% interest rate and Europe has a 0.05% interest rate, the U.S. dollar may rise in value against the Euro. This means that a fundamental trader would short EUR/USD.
    Last edited by painofhell; 10-30-2014 at 10:16.

  2. #2
    Join Date
    Dec 2013


    Fundamental analysis is about using real data to evaluate a security's value. Although most analysts use fundamental analysis to value stocks, this method of valuation can be used for just about any type of security. for fundamental analysis, I use a forex forecast provides a description of the state of the state of the market news. I saw it in TenkoFx

  3. #3
    Junior Member
    Join Date
    Oct 2014


    gracias por la información del tema

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