FUNDAMENTALANALYSISFUNDAMENTALANALYSIS

FUNDAMENTAL ANALYSIS  Fundamental analysis includes different macro economic factors  This is a study of factors which creates move in short term and long term  Concept varies from one currency to another  Each funda works in isolation

WHAT DOES FUNDAMENTAL ANALYSIS INCLUDE ?  Economical factors  Monetary policy  Political Factors  Overseas conflicts  Commodity prices  Equity markets

 A firm number given by any country sparks growth perspective in long term  Strong figures provide signals in business opportunities for market.  Revival in economy fetch inflows from different part of the world  Such improvement in the economy leads to appreciation in the currency or vice versa ECONOMIC NUMBERS AFFECT CURRENCY VALUE

INCREASE IN BUSINESS SENTIMENTS TO SECTORS GROWTH  Improvement in economical numbers helps to grow different sectors  The growth in business cycle leads to movement in export and import transactions  Currency value moves as per the change in current account situation pertaining to country

 Each news or economic number create speculation before release  Traders and investors anticipate a movement and as per that they hold their positions which creates movements in currency market  After releasing the data or news existing positions could be reversal or may square off depending on movement and data FINANCIAL MARKET REACTS OVER NEWS

NEWS TIMING ARE ANNOUNCED IN ADVANCE  There are many websites available where we can trace the exact timing and day for any news  As per the current situation and study of the market we can make early entry towards expected movement

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