The Definition if Fundamental Factors
The information that
contributes to the economic well-being and the subsequent financial valuation
of a company, security or currency. Analysts and investors analyze these
fundamentals to develop an estimate as to whether the underlying asset is
considered a worthwhile investment. By looking at the economics of a business,
the balance sheet, the income statement, management and cash flow, investors
are looking at a company's fundamentals, which help determine a company's health
as well as its growth prospects
Important Forex Fundamental Factors
A number of key
fundamental factors influence the forex market substantially and can affect
both your trading system and overall success.
A number of key
fundamental factors influence the forex market substantially and can affect
both your trading system and overall success.
The Important Forex Fundamental Factors below:
·
Economic Expansion - indicators such as the
Gross Domestic Product.
Political Situation and Fiscal Policy - political stability translates
into stability of the currency.
·
Monetary Policy - because of the
effect of monetary policy on interest rates
·
Financial Markets - the expected
performance of the financial markets denominated in a particular currency.
·
Geopolitical Factors and Wars - the foreign
exchange markets tends to favor currencies of peaceful nations with a stable
political climate.
This factor, which
determines the movement of capital, which is closely related to currency
speculation. If it were only on the export of goods and payments for current
transactions, the foreign exchange rate, could have been dull and fluctuated
only slightly.
