Fundamental Analysis
Understanding economic and political factors that move currency markets
What is Fundamental Analysis?
Fundamental analysis studies economic and political factors affecting currency values. It includes interest rates, economic growth, inflation, central bank policies, and geopolitical events.
Key Economic Indicators
Interest Rates
Very HighHigher rates = stronger currency (usually). Set by central bank.
GDP
HighMeasures economic growth. Higher growth = stronger currency.
Inflation (CPI)
HighAffects rate decisions. High inflation = potential rate hike.
Employment (NFP)
HighUS jobs report. One of the most important USD indicators.
PMI Indicators
MediumMeasures manufacturing and services sector activity.
Trade Balance
MediumDifference between exports and imports.
Major Central Banks
Geopolitical Events
Political events can move markets significantly and unexpectedly:
💡 Fundamental Analysis Tips
Economic Calendar
Essential tool for every fundamental trader
Economic calendar shows upcoming news and indicator schedules with analyst expectations. Use it to plan trades and avoid unexpected volatility.
Reliable sources: Forex Factory, Investing.com, DailyFX
Combine Both Analyses
Best traders combine fundamental and technical analysis
Learn Technical Analysis