What is the Skeleton of fundamentals?

July 9, 2023

In this article, we will discuss what is the Skeleton of fundamentals.

Now we start the boring stuff that nobody wants to learn simply because maximum retail traders think that this subject is too complicated and needs an economic degree to understand. If you have faith in us, we are going to simplify the subject and focus on what matters in Forex markets more. The fundamentals could be as difficult as you wanted them to be, so you do not need to be making this subject more complicated, which is not. Another truth is, this is the stuff that the majority of the trader are ignoring, resulting statistically majority of retail traders loose in the Forex market.

Yes, it is hard to wrap your head around some fundamental concepts and the skeleton of fundamentals. Even if you grab these concepts, you will change the way you look at the Forex market forever. There are two types of fundamental analysis as mentioned below:

Macro fundamental analysis.
Micro fundamental analysis.

Macro fundamental analysis:

Macro Fundamental analysis centers on broad economic factors that impact the Forex market altogether. The concept of the Macro Fundamental analysis begins with the overall assessment of the economy. Then it moves to analyze its effects on sectors and down to specific trading assets in the Forex market. You have to top-down approach for Macro fundamental analysis and it consists of the Employment of the country, the inflation rate of the country, the GDP growth of the country as well as numerous mixture of other economic activities.

Things that move the Forex market on a large scale are known as Macro events. Here are some Macro events listed below for understanding and we will learn all that events deeply later on.

Image showing some macro events that are helpful to understand the Skelton of fundamental

Fiscal policies
Monetary Policies
Election of any country
Bond yield Auctions
Central bank interventions

Micro fundamental analysis:–

Micro fundamental analysis is an examination of certain behaviors and economic patterns that trigger events leading to economic activity. For example, it analyses economic releases, corporate actions, social policies, New headlines, and a lot more. Simply put micro fundamentals tries to forecast economic trends, which could possibly influence the price of a respective currency pair instantly.

Micro events are, what make the Forex market “tick” on a daily basis. Here are some Micro events listed below for understanding and we will learn all those events deeply later on.

Image showing some micro events that are helpful to understand the Skelton of fundamental

Economic data releases
News Headlines
Speech from Govt. Officials
Mergers and acquisitions
Option Expirations

Success in the Forex market requires continuous learning, practice, and experience. You should also consider utilizing reputable sources and staying updated with current events, Macro events, Micro events, and Geo-Political events.

I hope this article is helpful for you to understand the Skeleton of fundamentals.

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In this article, we will discuss what is the Skeleton of fundamentals. Now we start the boring stuff that nobody wants to learn simply because maximum retail traders think that this subject is too complicated and needs an economic degree to understand. If you have faith in us, we are going to simplify the subject and…