Fundamental Analysis is the assessment of a business or a whole economy based on data pertaining to that business or economy. For an individual company this would include an analysis of the balance sheet, liabilities, assets, revenues, earnings, profits etc.

For a country’s economy, fundamental (or macroeconomic) analysis would look at and analyse many factors including; GDP, Employment, Inflation, interest rates, production as well as many other data points.

Traders can then use their analysis to derive a valuation about the true fundamental value for a security, asset, commodity or FX rate. The fundamental (or macroeconomic) analyst or trader can then compare this valuation with the current price (of the security, asset, commodity or FX rate) and then make a decision of whether it is overvalued or undervalued, then decide whether to sell or buy.

In this section we will look at fundamental and macroeconomic analysis in more detail. Furthermore, we will deliver articles aimed at developing the readers understanding and use of this this approach. Read more forex trading tips.


Intermediate

Can Corn Keep Climbing?

Posted on by Stephen Pope

Commodities in the grain complex have moved higher China was ending penalties against imports of U.S. grains After the 30-minute measure, technicals all look highly positive Corn looks set to make steady gains, extending the recent run higher There was a new swagger in the step of grain futures at the end of the past … Continued

Intermediate

Oil prices suddenly look beautifully bullish

Posted on by Stephen Pope

Crude has spiked 19% this year, to prices unseen since late 2014 Iran produced 5.1% percent of the world’s total crude oil Focus in the oil market will remain on geopolitical tension in the Middle East After President Trump withdrew the U.S. from the Iranian nuclear agreement Prices are set to advance over the summer … Continued

Intermediate

Gold Frustrates Through April/May

Posted on by Stephen Pope

U.S. Dollar Index has made great upward strides The World Gold Council said gold demand has slumped The metal may be down, but it is not out. Prices are set to advance over the summer into Q3 On April 2nd I said in the note titled “Gold Still In Focus”: “…Rising interest rates will put … Continued

Intermediate

Cotton On

Posted on by Stephen Pope

Cotton prices have been steered by subsidies and tariffs in recent months The technical aspect is looking highly bullish The commodity sector is in general undervalued Grains and softs look to be in the sweet spot with cotton to target 95 Many factors can have an impact the price of cotton. These range from the … Continued

Intermediate

Look past Trump, the data will push

Posted on by Stephen Pope

Since April 5th, USDJPY moved above a downward sloping trend line On Friday, the price extended above the April high at 107.486 The price remains above the March high at 107.286 Look for a push to 108.000   USDJPY climbed to a 1-month high on Friday President Trump toned down his rhetoric on China and … Continued