Fundamental Analysis in Forex

Welcome to Lesson 9 of the Basic Forex Education series by PROP365. In this video, we explain what fundamental analysis is and how it helps traders predict currency price movements by studying economic indicators and events.

What Is Fundamental Analysis in Forex?

This analysis involves evaluating a country’s economic health to determine the true value of its currency. Traders believe the market may misprice currencies temporarily, but eventually, prices will adjust to reflect the economic reality.

Why Does Fundamental Analysis Matter?

If a country’s economy improves, interest rates may rise to control growth and inflation. Higher interest rates attract foreign investors who buy that country’s financial assets. To do so, they must buy the country’s currency, increasing its demand and value.

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Disclosure: All information provided on this site is intended solely for educational purposes related to trading on financial markets and does not serve as a specific investment recommendation. This is not an investment opportunity. You do not deposit any funds for investment. We do not ask for any funds for investment. There are no promises of rewards or returns. It’s crucial to differentiate between purchasing a program from PROP365 and depositing in a financial institution. The fees you pay for our programs are not deposits. PROP365 does not offer financial advice or issue or deal in financial products. All trading will occur on demo accounts under simulated live trading conditions. All funds are simulated trading funds, and all profits are simulated profits.

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