Saturday, August 15, 2009

Fundamental Analysis

1:
The value of a country's currency is influenced by a number of factors: The economics of the country, its trade deficit, political and social environment. If the current government's deficit increases, its currency's value will fall. As the government decreases its deficit, the currency can begin to recover value and the exchange rate will become more favorable. The same relationship holds true with a country's trade deficit. If the country imports more goods and services than it exports it will have a negative influence on the currency.

2:
The Euro Bull: The New paradigm of FOREX

As the EUR/USD breaks 1.50, investors should take another look at foreign exchange. 100/barrel oil, $1,000 gold, and $10/bushel wheat are not anomalies, nor is there a bull market in commodities. The US dollar is losing its value and its relevance as a world reserve currency.

3:
An explanation of how far dollar can go down - contrast with other markets and looking from value perspective.

4:
Information on using fundamental analysis for FOREX trading.

5:
Investors using fundamental analysis to make investment decisions are looking at the underlying aspects that determine company and stock valuations.

6:
Remember, fundamental analysis is a very effective way to forecast economic conditions, but not necessarily exact market prices.

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