Fundamental analysis is the interpretation of statistical reports and economic indicators. Things like changes in interest rates, employment reports, and the latest inflation indicators all fall into the realm of fundamental analysis.

1. How to simplify
FUNDAMENTAL ANALYSIS
Syam Kumar
Dealer, Cfb

2. FUNDAMENTAL OR TECHNICAL????
Let’s say you’re packing to go away on vacation.
There are two ways to decide whether to bring
an umbrella: You can look at what the weather
was at your destination on this date for the last
ten years, or you can call up natives and ask
them if it feels like rain. This is the difference
between Technical and Fundamental Forex
analysis.

3. FOREX FUNDAMENTAL ANALYSIS
Fundamental analysis in Forex is a type of market analysis
which involves studying of the economic situation of
countries to trade currencies more effectively.
‘It gives information on how the big political and economical
events influence currency market’

4. EXAMPLE
UK Retail Sales Unexpectedly Drop In June,
Pound Falls
U.K. retail sales unexpectedly dropped in June, causing the British
pound to erase its gains versus the U.S. dollar.
Sales at retailers slipped 0.2 percent in June from an upwardly
revised of 0.3 percent increase, the Office for National Statistics
said in London on Thursday. Economists had estimated a 0.4
percent soar
As of 08:42 GMT, the pound fell from a high of 1.5668 versus the
dollar to trade at 1.5593, while the low was set at 1.5581.

5. INDICATORS
CB
TOOLS
EMPLOYMENTGEOPOLITICAL GROWTHINFLATION
INTEREST
RATES
LANGUAGE
QUANTITATIVE
EASING
PRODUTION

6. PRIMARY DUTIES OF CENTRAL BANK
• Implement a monetary policy that provides consistent
growth and employment
• Manage the production and distribution of the nation's
currency
• Controlling the nation's entire money supply and
determining Interest rates.
• Promote the stability of the country's financial system

7. INDICATORS
• PRODUCTION
Example: PPI,CPI, PMI, Home Sales etc..
• GEOPOLITICAL
Example: war, natural calamities, changes in political
and govt. sectors.
• EMPLOYMENT
Example: NFP, Jobless Claims, Unemployment rate
• GROWTH
Example: GDP
• INFLATION

10. SOURCES OF DATA

11. ECONOMIC CALENDER
• Economic calendar is created by economists where they
predict different economics figures and values according
to previous months.
• It used by traders for the purpose of tracking the
occurrence of market-moving events.
• Investors will research the date and time of a specific
event and pay close attention to the announcement
because of the high probability that it will affect the
direction of the market.

13. THANK YOU
If you are not willing to learn, no one can help
you.
If you are determined to learn, no one can stop
you.