Fundamental Analysis
Fundamental Analysis is a type of analyze which is done in order to measure the internal value of an asset. It also enables to make assumption and assessment with the help of the existed data.
To be able to make an assumption on any instrument only past price movements and examining charts might not be enough. In addition to those, the global market news and events should be followed closely especially the ones related with the base currency of the trade. The incidents such as the UK lefting the UN, the planned increases in interest rates by FED, the cut in supply after OPEC meeting, progressive decline in operating profitability for a stock can cause fluctuations independently from the charts and past price movements. The incidents like those is a part of Fundamental Analysis.
When pricing the currencies, geopolitical factors, general trust in economy, international relationships, war, natural disasters etc. play a significant role. Besides the fact that they are the main topics of fundamental analysis, macroeconomic data not only affects one instrument but also affects all instruments globally based on their impact level.