Introduction to Fundamental Analysis

By Roger Baettig
09 November 2009 @ 11:45 am EDT

The basic premise of fundamental analysis is that the value of a currency is determined by the comparative strength and weakness of a country's economy in relation to those of its trading partners. The stronger a country's economy - measured in higher GDP growth, lower inflation, higher interest rates, greater productivity, more political stability, etc. - the stronger a country's currency. Over time, these fundamental factors produce the long lasting price trends typical of the currency markets.

This article is copyrighted by International Business Times.

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