Fundamental analysis is a method of forecasting a security by attempting to measure its intrinsic value by examining related economic, financial and other qualitative and quantitative factors.

Fundamental analysts attempt to study everything that can affect the financial instrument’s value, including macroeconomic factors (like the overall economy and industry conditions) and individually specific factors (like the financial condition and
management of companies). This method of security analysis is considered to be the opposite of technical analysis.

The purpose of performing fundamental analysis is to produce a value that an investor can compare with the instrument’s current price in hopes of figuring out what sort of position to take (under priced = buy, over priced = sell) . Fundamental analysis is described numerically by economic indicators. Not only the numerical number of the indicator is important but also the market’s anticipation and prediction of the forecast, and the impact of the relation between anticipated and actual figures on the market.

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