In a fundamental Forex analysis you actually value a company, for a stock market, or a country, for Forex. If you think it is difficult to value one company, you should try to value an entire country. It can be difficult to do, but there are indicators that can be studied to provide insight into how the country works. A few indicators that you may need to study during Forex analysis are: Non-agricultural payrolls, Consumer Price Index (CPI), Purchasing Managers Index (PMI), Sustainable Goods, and Retail.
In the Forex market, most traders use basic Forex analysis to predict long-term trends. But some traders act in the short term based on the response of various news items. There are quite a few meetings where you can get comments and which can have as much influence on the markets as on news items or indicators. All of these meetings often discuss interest rates, inflation and other issues that affect currency values.
You have to watch out for two important meetings, these are the Humphrey Hawkins Hearings and the Federal Open Market Committee. For example, the comments from the Federal Reserve Chairman about interest rates, it will cause market volatility.
By reading the reports and examining the comments, a fundamental Forex analyst can gain a better understanding of most trends in the long-term Forex market. By keeping up with developments in the Forex market, traders can take advantage of extraordinary events in the short term. If you decide to follow a fundamental Forex strategy, you always want to have an economic calendar at hand. Your Forex broker may also be able to give you real-time access to this type of information for use in your Forex analysis.