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What is fundamental analysis

  • 08/05/2018
  • Alpari
Fundamental analysis

This type of analysis is often used by traders which prefer long-term trading. A forecast is made on the basis of the current economic and political situation Traders analyse the economic news and base their actions on events that could have a significant effect on the world economy. This could be changes in the political life of a country or its overall economic state, information about price changes in different indices, etc. Fundamental analysis takes everything into account, even rumours and expectations.

As such, this type of analysis is completely reliant on internal and external factors which have an effect on the world economy. Moreover, to effectively analyse you need to see not only the dependence of factors, but also their interdependence. For example, a strengthening or weakening of one of the world’s leading economies could have an effect not only on the quotes of its currency, but also the currencies of its economic partners.

Fundamental analysis takes places with the help of economic calendars, financial news feeds, reports from various states and non-state organisations and analysis of economic indicators. There are companies which specialise in this type of analysis. For example, the news feed from FxWirePro is somewhere where you can always find the most up to date data on financial markets.

Alpari’s analytical services will help you to always stay updated on economic and political events. Reviews from the best analysts, calendars of events, indicators and much more is provided for you to use in your work. Alpari offers the following services for you to use in your fundamental analysis:

Want to learn more about fundamental analysis?

Read our analytical reviews and take part in Alpari training courses.

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