Understanding Fundamental Analysis

Fundamental analysis in forex involves studying economic indicators, political events, and news to predict currency movements based on economic health.

Key Economic Indicators

GDP, inflation rates, employment data, and interest rate decisions are among the most important indicators that move currency markets.

Central Bank Policies

Central banks play a crucial role in forex markets through monetary policy decisions, interest rate changes, and quantitative easing programs.

Geopolitical Events

Political events, elections, trade wars, and international conflicts can significantly impact currency values and create trading opportunities.

Economic Calendar

Using an economic calendar helps traders prepare for major announcements that could cause significant market volatility.