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Forex fundamental analysis course / How Important is Fundamental Analysis?

forex fundamental analysis course

Forex fundamental analysis course.

As the major financial market, the forex is affected by an extremely varied number of factors.
These market fundamentals are the main elements to decide whether and when a currency will grow in value.
So the Forex market is very affected by the news of the country and economic news of that currency.
And to understand the fundamental news is very important for a Forex trader.

What is the Fundamentals Trading? / Forex fundamental analysis course.

As has been noted Fundamentals trading also is known as news trading, this study of news events and economic data to assess trade opportunities.
So these news traders pay careful attention to changes in economic factors like employment rates, interest rates, and inflation.
By analyzing the relative trend of these data, a trader analyzes the current strength of the economy of that country.
Because they want to know when to trade their currency’s future movement.

So there are periods in the global economy when a currency pair‘s true value varies with the currency pair’s market value.
And the fundamental analyst’s task is to look at a currency using other calculation criteria.
So compare its price with the other currencies, and decide if the present value is the pairing’s true value.
Or if the value of one currency against another is underpriced or overpriced.
If a currency is underpriced then the Forex trader’s approach to the fundamental analysis is to take a long stand on the underpriced.
Similarly, if the fundamental analyst sees a currency as being overpriced.
So it will assume a sell position in order to profit from a potential downward trend towards accurate value.

forex fundamental analysis course

Economic news releases. / Forex fundamental analysis course.

In any country, the following economic news releases are typically the most relevant.
These releases vary depending on the current state of the economy:

  • Inflation (consumer or product price)
  • Consumer Confidence Surveys
  • Industrial Production
  • Gross Domestic Product (GDP)
  • Business Sentiment Surveys
  • Inflation (consumer or product price)
  • Retail Prices, Interest Rate Decisions
  • Trade Balance
  • Manufacturing Sector Surveys
  • Employment / Unemployment (Non-Farm Payrolls)

Interest rate policy is the main key of currency prices movement.
And generally a technique for currency traders to analyze forex fundamentals.
If the economy is strong or weak, it will be reflected in the interest rate policy of that country.
So therefore the currency’s strength or weakness.
Essentially, if any country or currency increases its interest rates and has a stable economic policy.
The country’s currency should increase.
Even if a country or currency lowers interest rates, the single currency may be weak.


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About Author
Kevin The Forex Scalper

Welcome to my author blog. With over 12 years of experience in the financial markets, Trading is more than a profession for me; it's a passion that has fueled my curiosity and determination. Over the years, I've explored various trading strategies, dabbled in different asset classes, and navigated through the ever-evolving landscape of technology and innovation. Through it all, I've witnessed firsthand the transformation of the financial industry. My mission is to share the wealth of knowledge I've gained over the years with you, my fellow traders and aspiring investors. Whether you're a seasoned pro looking for fresh perspectives or a newcomer eager to understand the basics, you'll find something valuable here.

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