Fundamental Analysis
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Fundamental Analysis: A Basic Understanding
Earlier we mentioned the idea of buying and selling based on our predictions of whether a given forex currency was going to go up or down against another.
One way to make those predictions is to consider what’s happening between those two countries. If one country is doing better than another, its currency might rise, or if it has a disaster its currency is likely to fall.
Studying these factors is called fundamental analysis, and something we’ll get into later in the course. For the moment let’s just look at a couple of basic fundamental analysis examples so we can get an idea of how you can make money both buying and selling.
Examples of Basic Fundamental Analysis: