In our first lesson about fundamentals, we will discuss what fundamental analysis actually is, how it can assist the trader and how supply and demand set rates.
So, what is fundamental analysis?
Fundamental analysis is the study of the economic and political forces that determine currency exchange rates. So, fundamental analysis is about trying to find the fair value of a currency in terms of another currency as expressed by exchange rates. By forecasting how these forces will change and develop over the medium term, we hope to forecast how exchange rates will move.
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