July 21, 2020
Fundamental analysis helps traders assess currency value by analyzing economic factors, interest rates, and policies to spot undervalued assets.
Tommy Cunningham
Multi-Asset Class Trader & Market Strategist

Fundamental analysis and how to use it

Fundamental analysis is a method of determining the fair value of an asset. When the price differs from its value, then an opportunity arises for a trader, considering the price should return to its correct value over time.

Fundamental analysis in the context of the forex market consists of assessing all the factors that have an impact on the price of the currency (on exchange rates), such as economic performance, interest rates, government policies, related events, etc. Traders use fundamental analysis with the objective of forecast future prices, searching for undervalued/overvalued assets.

Best fundamental news outlets:

  • Bloomberg https://www.bloomberg.com/
  • Investing https://www.investing.com/
  • Wall Street Journal https://www.wsj.com/
  • Financial Times https://www.ft.com/
  • FXStreet https://www.fxstreet.com/
  • Forex factory https://www.forexfactory.com/
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