What is Fundamental Analysis in Forex?

Fundamental analysis is a technique of predicting price movement by using economic information/data about the instrument.

If a fundamental trader is analyzing stocks he will look at earning reports, balance sheets, & that sort of thing

But for forex traders, fundamental analysis is carried out by listening to the news for information on interest rate changes, watching out for economic reports on inflation, GDP, unemployment etc. because these factors can influence the exchange rate of a currency.

Pros	Cons
✅Fundamental analysis is more accurate & less subjective	❌Time consuming & not suitable for fast paced trading
✅Fundamental analysis can be carried out offline
✅Data for carrying out fundamental analysis is easy to get

Common Tools for Fundamental Analysis in Forex

Forex brokers today provide much of the needed tools & data for fundamental analysis such as:

News
Economic calendar
Market insights
Earnings calendar

News

Forex brokers forward latest economic news that can impact exchange rates straight to your trading platform.

The news is commonly sent to mobile apps for forex trading & is also available on the forex brokers website.

News is important to a forex trader because it keeps you abreast of latest events that can lower or raise exchange rates.

We also have a news section here on MyTradingLand where the latest economic news can be found and we also tag the relevant currency that the news can impact.

Economic Calendar

An economic calendar is a list that contains dates when major economic data will be released. The economic calendar also has a reminder feature which reminds you when the release date is near.

Most forex trading apps have economic calendars built into them, & forex brokers also have the economic calendar on their websites.

Here on MyTradingLand, we have an economic calendar feature you can use so you are alerted when economic data is about to be released.

Market Insight

Market Insight means opinions from experts on what is going on in the forex market.

Most forex brokers offer market insights on their mobile apps & websites so you can listen to third-party opinion on market moving events.

Earnings Calendar

By corporate actions we are talking decisions made by the board of a company that affect their stocks.

Examples of corporate actions include dividend payment, release of performance reports, etc.

An earnings calendar is important for fundamental analysis for stock traders because on the eve of corporate actions your broker can increase the margin requirement for the Stock CFD.