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.


Beginner

€ and $; Tug of War

Posted on by Stephen Pope

Euro’s good week fell apart on Friday The Dollar has supported but may struggle to break 1.2132 Eurozone economy improves; ECB could start normalising earlier than expected Treasury yields have broken higher That could unsettle the US economy and Dollar demand There can be no argument that EURUSD had a great run this past week … Continued

Intermediate

GOP, Donald and Debt

Posted on by Stephen Pope

Trumps plans are adding %1.5 Trillion to America’s debt burden This is the cost of his tax cut programme and new infrastructure investment Treasury yields have broken higher after months of decline Is the given that foreign accounts will keep on buying a certainty? There used to be an infallible rule of western politics. Parties … Continued

Expert

Bitcoin…Cut & Run Amid the “FUD” or

Posted on by Stephen Pope

Bitcoin and other cryptocurrencies suffered a woeful week The potential for much tighter regulation grows each day The diehard believers think this is the right time to buy Is the risk that it is all a Ponzi Pyramid worth it…probably not Bitcoin has been under pressure in the past week like never before. Just as … Continued

Intermediate

Global Growth Shows

Posted on by Stephen Pope

Global growth is expected to reach 3% in 2018 The potential for much faster growth is limited This time there is less reliance on one growth engine Do not overlook potential flat-spots in America, China and Europe It is now a decade since the world descended into a devastating economic crisis. A key signal of … Continued

Intermediate

The Dollar, DC, Deutschland & Draghi

Posted on by Stephen Pope

Dollar found few friends in the ring last week The fear of a shutdown in the Federal Government kept many away German party leaders want a “Grand Coalition”, but their parties must approve it On Thursday, Draghi has to sweet talk the Euro down from lofty heights In the past week, many major currencies rose to … Continued