What is Fundamental Analysis in Forex?
Fundamental Analysis
Forex Trading Glossary
Quick Answer: Fundamental analysis studies economic indicators, central bank policies, and geopolitical events to determine currency values and predict long-term trends.
What is Fundamental Analysis?
Fundamental analysis evaluates currencies through economic data, monetary policy, and geopolitical events. It seeks to determine the intrinsic value and long-term direction of a currency.
Core Components
- Economic indicators: GDP, employment, inflation, and sentiment data.
- Central bank policy: Interest rates, balance sheets, and forward guidance.
- Fiscal policy: Government spending and taxation trends.
- Global themes: Trade flows, commodity cycles, and risk sentiment.
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