Fundamental analysis
The basis of fundamental analysis - conclusions and causal relationships of financial and economic theories, as well as the political situation, which determines the movement of supply and demand. Therefore, fundamental analysis - is, first of all, the study of macroeconomic indicators, asset markets and political factors to determine the value or attractiveness of one currency against another.
The main macroeconomic indicators are all familiar with: the dynamics of growth of gross national product, interest rates, inflation, unemployment, consumer demand, foreign exchange reserves and productivity.
Asset markets comprise stocks, bonds and real estate.
Political factors imply a degree of confidence in the government, its stability and reliability, the relationship between government and business, the degree of "control" the economy. Sometimes governments intervene in the market forces that influence the rates of their currencies in order to prevent undesirable for these trends. One of the tools on the market are the effects of interventions by central banks of countries, ie, the purchase (or sale) of large amounts of national currency.
