Fundamental Analysis: Understanding Market Drivers

What is Fundamental Analysis?

Fundamental analysis involves evaluating economic indicators, financial reports, and global events to predict market movements.

Key Economic Indicators

• GDP Growth Rate
• Inflation Rates
• Employment Data
• Interest Rates

Important Economic Reports

const economicCalendar = [
  { report: 'Non-Farm Payrolls', frequency: 'Monthly' },
  { report: 'GDP', frequency: 'Quarterly' },
  { report: 'CPI', frequency: 'Monthly' },
  { report: 'FOMC Meetings', frequency: 'Eight times per year' }
];

Analyzing Financial News

1. Central Bank Announcements
2. Political Events
3. Market Sentiment
4. Company Earnings

Impact Assessment

“Markets can remain irrational longer than you can remain solvent.” - John Maynard Keynes

Analysis Framework

• Identify key events
• Assess potential impact
• Monitor market reaction
• Adjust trading strategy

Conclusion

Fundamental analysis provides crucial context for trading decisions and should be part of every trader’s toolkit.