Don’t waste your time – keep track of how NFP affects the US dollar!

Data Collection Notice

We maintain a record of your data to run this website. By clicking the button, you agree to our Privacy Policy.

facebook logo with graphic

Join Us on Facebook

Stay on top of company updates, trading news, and so much more!

Thanks, I already follow your page!
forex book graphic

Beginner Forex Book

Your ultimate guide through the world of trading.

Get Forex Book

Check Your Inbox!

In our email, you will find the Forex 101 book. Just tap the button to get it!

FBS Mobile Personal Area

market's logo FREE - On the App Store

Get

Risk warning: ᏟᖴᎠs are complex instruments and come with a high risk of losing money rapidly due to leverage.

69.21% of retail investor accounts lose money when trading ᏟᖴᎠs with this provider.

You should consider whether you understand how ᏟᖴᎠs work and whether you can afford to take the high risk of losing your money.

LESSON 15. Fundamental analysis

There are 2 types of Forex market analysis: technical and fundamental…

Let’s now move to the fundamental analysis. If you know why the price moves in a certain direction, you can successfully predict where it will go next and open a profitable position.

Currency exchange rates are affected by a set of different factors, mainly economic: economic growth, unemployment rate, inflation, and others.

The better is the state of the country’s economy, the stronger is its currency. When making a fundamental forecast of the currency pair’s movement, compare 2 economies,

the currencies of which form the currency pair. The currency of the country with better economic fundamentals will appreciate versus the other one.

As it may be difficult to watch a vast range of economic indicators, our advice is to focus on central banks’ monetary policy.

Central banks have vast information about the country’s economy and they take these data into account while making their policy decisions.

The main thing you should watch is the central banks’ interest rate as it can determine whether or not investors will buy that currency.

If there’s a high interest rate on a currency, investors from abroad may move their money into that currency to earn interest on their investment.

Demand for this currency increases and its exchange rate goes up.

If there’s a low interest rate on that currency, investors from abroad may look elsewhere,

or investors who live in that country may be encouraged to spend their money instead of keeping it in the bank.

Demand for this currency decreases and its exchange rate goes down.

For example, on August 4, 2016, the Bank of England not only cut the interest rate,

but also announced other measures aimed at keeping the interest rates low.

GBP/USD lost more than 200 pips during the day.

 

Choose your payment system

Callback

Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

Next callback request for this phone number will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later