• eur/usd 1.1862

    0.18

    BTC/usd 15.674.99

    8.60

    ETH/usd 674.99

    13.60

  • eur/usd 1.1862

    0.18

    BTC/usd 15.674.99

    8.60

    ETH/usd 674.99

    13.60

  • eur/usd 1.1862

    3.95

    BTC/usd 15.674.99

    4.78

    ETH/usd 674.99

    11.37

The Essence Of Fundamental Analysis

Black board written with white chalk FUNDAMENTAL

Black board written fundamental

Fundamental analysis

Fundamental analysis is a method of value measurement of a security by examining related economic and financial factors. Fundamental analysts study anything that can affect the security’s value, from macroeconomic factors such as the state of the economy and industry conditions to microeconomic factors like the effectiveness of the company’s management.

Consist of:

  • News events
  • Policy changes
  • Economic announcement
  • Company earnings

(GDP) Gross Domestic Products

Amongst the economic indicators, gross domestic product report is one that stands out, it impacts future trades in all angles. This is considered as the highest measure of the overall state of the economy. When you want to trade currencies then you must follow the reports religiously. The GDP is the total monetary value of all goods and services produced by the whole economy during the quarter being measured. This gives you an appreciation of the current value of an economy’s currency.

Producer Price Index (PPI)

The producer price index (PPI), published by the Bureau of Labor Statistics (BLS), is a group of indexes that calculates and represents the average movement in selling prices from domestic production over time. It is a measure of inflation based on input costs to producers. This is the most significant way of measuring the inflation of a country, The producer price index is designed to measure how many producers are receiving goods.

Consumer Price Index (CPI)

A comprehensive measure used for estimation of price changes in a basket of goods and services representative of consumption expenditure in an economy is called consumer price index. It is used extensively to measure inflation, it measures the change in cost of a bundle of buyer goods and services from one period to another.

Durable Goods Orders Report

The durable goods orders report is a monthly report released by the governments. The report encapsulates the sales of durable goods over the preceding month. It measures how many people are paying a long tern purchase of goods that last up to three years.

These are the four major Reports which are a must not miss, but however there is more to fundamental analysis if you want to trade fundamentals such as :

  • Employment indicators
  • Retail sales indicator
  • Interest rates
  • Housing data

Just give it a try with fundamentals you will never go wrong, the fundamental movements in the forex market is just fundamental, you will like the experience.

 

 

 

 

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