Fundamental Analysis

Central banks wield immense power through monetary policy decisions, interest rate changes, and asset purchases, directly impacting a country’s currency. Understanding central bank dynamics can allow traders to anticipate and react to interest rate shifts, inflation targets, and economic stimulus measures, gaining a competitive edge in forex trading. The relationship between Central Banks and the … Read more

Understanding and interpreting Forex economic reports is crucial for traders looking to maximize their trading potential. These reports provide valuable insights into the economic health of a country, influencing currency value and trading strategies. This article aims to demystify the process of reading and interpreting these reports, offering traders the knowledge to leverage economic indicators … Read more

In the world of foreign exchange, or forex, geopolitical events are key. They shape the market in big ways. Currencies react to political events, making forex both exciting and tough for traders and analysts. By looking into how geopolitical events affect forex, traders can handle market ups and downs better. It’s key to know how … Read more

What Are Commodities? Commodities are raw materials used to manufacture consumer products. They are inputs in the production of other goods and services, rather than finished goods sold to consumers. In commerce, commodities are basic resources that are interchangeable with other goods of the same type. The quality of a given commodity may differ slightly, … Read more

The stock market and the forex market are two of the world’s most widely followed and traded financial markets. But have you ever stopped to consider how these two markets are related? In this article, we’ll explore the intricate and complex relationship between the stock market and the forex market. We will delve into the similarities and … Read more

Market sentiment reflects the overall mood of traders – whether they feel bullish (optimistic) or bearish (pessimistic). Trading sentiment involves recognising these trends and using them to guide decisions, often by following momentum. Market sentiment refers to the overall attitude or feeling of market participants toward a specific asset or the broader financial market. Sentiment … Read more

An exchange rate shows how much one country’s money is worth compared to another. It works like a link, helping people trade goods, services, and investments between countries. For instance, when you buy items from other countries or travel, exchange rates change what you pay. Exchange rates are important for global trade. They affect the … Read more

Monetary policies significantly impact currency trading. Indeed, they tend to determine the overall strength of most currencies. Investors usually pay attention to the monetary policies of a country’s central bank since they directly affect currency performance. These monetary policies can be either expansionary or contractionary. Expansionary monetary policies usually boost a country’s economic growth by … Read more

Inflation is a crucial factor in economics and plays a key part in fundamental analysis. Let’s take a closer look at what inflation, hyperinflation, and deflation all really mean, and how inflation is measured. As we covered in the previous lesson, central banks must maintain a tricky balancing act. Most have a dual mandate of maintaining high … Read more

Financial markets rarely move in isolation. A trend in one asset will often ripple around several others, meaning some prices rise as others fall. This effect is called market correlation. While it can be useful for spotting opportunities, it can also increase your risk if you aren’t careful. But by understanding how correlation works in forex … Read more