What is Fundamental Analysis?
Each trader strives to know in which direction the price of his asset will go. However, just observing the charts is not enough for forecasting, you also need to monitor all the important global events. Fundamental analysis helps to cope with this task.
What are the events to watch out for?
- Natural disasters (earthquakes, hurricanes, floods, etc.).
- Economic and geopolitical developments.
- Prospects for the country and attitude towards it.
- Military conflicts.
- Political events (elections, referendum).
- Output of important statistics.
Bad weather and natural disasters can adversely affect the harvest. Destruction of infrastructure due to extreme weather conditions, the loss of the harvest itself, the depressing mood in the state will affect the economy, say nothing of the fact that the government will need to allocate funds for recovery.
The markets of countries drawn into hostilities are subject to volatility, as the state needs to control public mood, finance weapons, and much more. All this destabilizes the economy and can lead to its decline.
During the release of important data, all markets focus their attention on this event anticipating its results and how it will affect assets.
The markets of countries drawn into hostilities are subject to volatility, as the state needs to control public mood, finance weapons, and much more. All this destabilizes the economy and can lead to its decline.
During the release of important data, all markets focus their attention on this event anticipating its results and how it will affect assets.
Economic Indicators
Traders often use additional tools to help them stay abreast of all the important news. The main such indicator is the economic calendar. Due to it, you will learn about the event, when it occurs and much more.
