Fundamental Analysis: Understanding Economic Indicators

Fundamental analysis is a method of estimating the value of an asset based on the study of economic, financial and other qualitative and quantitative factors. It is important for traders to understand the main economic indicators such as GDP, unemployment, inflation and interest rates. These data help to assess the general economic conditions and predict the direction of market movement. For example, GDP growth and a decrease in unemployment usually contribute to the strengthening of the national currency. Learning fundamental analysis will allow you to make more informed trading decisions.