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Fundamental Analysis Tools 

Fundamentals move the Forex market. Fundamentals affect the 

supply of a currency. Fundamentals affect the demand for a currency. 

Fundamentals are where it all begins. If you can get a handle on fundamental 

analysis, you are well on your way to making profits in 

the Forex market. 

When you start to think of everything that occurs around 

the world every day—from the performance of the Japanese stock 

exchange to the number of barrels of oil Saudi Arabia produces—you 

start to realize that there are literally thousands of fundamental factors 

that could have an impact on the Forex market at any given time. 

That is quite an overwhelming thought. Nobody could possibly 

keep track of every little thing that happens. And believe us, they 

don’t. Some Forex investors may be focusing on commodities prices, 

while others are focusing on the stock market in London. What is 

important to one investor may not be important to another, and that 

is okay. To be successful in the Forex market, you do not have to 

monitor everything that happens everywhere around the world all 

the time. You only need to stay on top of the big stuff. 

In this section, we outline a few fundamental factors we believe 

belong in the category of “the big stuff.” Many different fundamental 

factors have affected the Forex market in the past. And while some 

of those same fundamental factors will most likely play a role in 

shaping the future of the Forex market, many won’t. We focus on six 

fundamental factors that will play a significant role in driving the 

Forex market in the future. We want to point out up front, however, 

(Copyright © 2006 by The McGraw-Hill Companies, Inc. Click here for terms of use.) 

Copyright © 2006 by The McGraw-Hill Companies, Inc. Click here for terms of use.