The concept of Fundamental Analysis
Fundamental analysis is performed on historical and present data. It is a technique that attempts to determine the value of a business by analyzing the company’s financial statements, the company’s management and competitive advantages as well as analyzing its competitors and markets. When applied in the Forex market, it focuses on the evaluation of currencies of different countries. All of the news reports and political events that come from a specific country are used by investors to gain an idea of a country’s currency value. As a result, traders who use fundamental analysis in Forex, consider the news releases very important for their trading decisions. For example, when a trader wishes to trade the EURUSD then it is recommended to keep a close watch on announcements related to the United States and the Euro zone. Given that there are practically unlimited Forex fundamental data, XGLOBAL Markets has identified the most important of the indicators that you need to pay attention.