CHAPTER 4
Fundamental Analysis
Your work as a trader will be done prior to the trade being executed. Traders spend huge amounts of their time in research and studying data they have produced from their technical analysis indicators or economic data that is coming over their news screens. Fundamental analysis is all about interpreting economic indicators, social factors, and government policies, and all three can have a significant influence on the price of a country’s domestic currency.
The factors that a trader analyzes for fundamental analysis are interest rates, growth rates, inflation rates, and unemployment levels. These issues all impact on the supply and demand of a currency with interest rates and the overall strength of an economy (gross ...
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