WHAT IS FUNDAMENTAL ANALYSIS in FOREX TRADING?

"The fundamental analysis is a price of financial asset depending on political and economic processes and events"

There is an interconnection between financial-economic, political and economic events that take place in certain countries as well as in the whole world, and currency rates and actions. This interconnection is studied in the framework of the fundamental analysis.

The fundamental analysis is the most difficult part of economic analysis of the financial market. It carries out significantly more difficult than any other analysis, as one and the same factors in different conditions influence differently on the market; the important ones can turn into insignificant. Apart from definite general formal rules the practical experience is needed to carry out an analysis like this.

The methods of the fundamental analysis are used in practical activity of a trader with other types of market analysis and allow to estimate the main situation of history and perspectives of the rates of exchange instruments, on the assumption of interconnection of fundamental economic and other factors and standard reactions on them of the exchange markets.