Thursday, June 11, 2009

FUNDAMENTAL ANALYSIS


Fundamental analysis is the view of the market through economic, social and political forces that affect supply and demand. In other words, you can look at the economy is doing well, the economy sucks.

This type of analysis is that if the economy is doing well, their currency will also thrive. This is because the better the economy, the greater confidence in other countries in that currency.



For example, the U.S. dollar was gaining strength because the U.S.economy gaining strength. Given that the economy improves, the higher interest rates to control inflation and hence the value of the dollar continues to rise.

In short, this is essentially what fundamental analysis is. Later, during the news to learn that a particular event the unit price for most currencies. So far only know that the fundamental analysis of Forex is the currency in which the analysis of forces from the country's economy.

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