Forex Fundamental Analysis

Posted by: | Posted on 12:30:00 AM | Post Categories

 Fundamental analysis is the analysis that is done based on economic, social or political etc.

In fundamental analysis you need to notice which country's economy is doing well and which country's economy is going bad. How and why various events, including the rise in unemployment, play a role in the country's economy, all these issues you need to pay attention to in fundamental analysis.

If a country's current or future economic situation is good, then that country's currency will be stronger. The better a country's economy, the more foreign investors will be interested in investing in that country. So they have to buy the currency of that country and the value of that country's currency will increase further. If Bangladesh's economic situation had been better, more foreign investors would have been interested in investing in the country and expanding their business. As a result, the value of Bangladeshi money won out a lot. The same is true of other currencies.



One thing is fundamental analysis

  →   The economic condition of the country is good = the value of the currency is high
  →   The economic condition of the country is bad = the value of the currency is low

Let's say the UK. S. The dollar is getting stronger because the US economy is doing better than before. Then they may need to raise interest rates to control inflation.

Higher interest rates make dollar-dependent economic assets more attractive. So if someone wants to buy or invest those assets, they have to buy their dollars first. And as a result, the value of the dollar will increase.

Later in other articles of fundamental analysis you will find out about different news, their effects and how to understand and trade them.

 

 



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