So What Is Fundamental Analysis?
Fundamental analysis is the evaluation of an asset by looking at all the internal and external factors that could influence its price.
These can include interest rates, financial policy and overall local and global economic conditions and even politics and the environment. Which of these has more weight depends largely on which asset you're trading but it is, after all, a global economy and every piece impacts every other.
Of course, if you tried to trace back every single element that effects the direction of an asset price, you would never actually trade!
So instead traders just use a basic economic calendar. This is just a list of all the important economic data that is being released from the countries that have the most effect on the markets. Usually the prices will move in expectation of or in reaction to these announcements and so that is where good trades are most easily found.
But don't forget, it's important to keep up to date with more general financial headlines too so that you can fit that information into a greater context.
Keep reading to learn about the specific announcements that usually have the most dramatic impact on the market and asset prices.
