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Thursday, June 6, 2013

Introduction to Fundamental Analysis

Fundamental analysis is the study of factors that affect the economic situation of the state, so by measuring the state of economic growth, inflation and interest rates and the industry's productive capacity and unemployment rates and political stability of the state and which affect the supply and demand.

Fundamental analysis depends on the currency market on the study of macroeconomic (Macro Economic), and the fundamental analysis is based on a key principle is that the value of the currency affected by the strength or weakness of the economy, the more the economy was strong become a strong currency. And vice versa.

In general, measures the fundamental analysis the strength of the economy through the statistics economical, these statistics are called economic indicators (Economic Indicators), and each of these indicators expressing one sector or group of sectors of the economy, and the study of these indicators can see the current economic situation, whether positive or negative .

Before you start in the study of fundamental analysis must know first that it can not rely on an essential element of one without the other of the other elements, so that the economy can grow in part in one of the sectors, while deteriorating in other sectors, so Valthalil basic depends on the study of all the economic indicators and information available in order to reach a general vision of the state of the economy and predict the direction of the currency in the future.

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