Read more
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

XTB Online Trading

Fundamental Analysis (definitions)

Related subjects:
Fundamental analysis Glossary
Reading time: 4 minute(s)
From macroeconomic data to NFPs and the FOMC, in this article you can learn all the important terms you need to know when you first start learning about fundamental analysis.
  • Macroeconomic data – data relating to the performance of the economy as a whole. It might refer to economic growth (e.g. GDP reports), employment (e.g. unemployment rate) or inflation (e.g. CPI reports). It is usually prepared and released by national statistical offices and other state institutions, for instance, US Census Bureau or US Bureau of Labor Statistics. 
  • Inflation - represents price changes over a period of time. If there is an increase of an average price level, the purchasing power of a given currency declines. As a result, the general level of prices for goods and services is rising. The opposite of inflation is deflation – a scenario when prices generally fall in an economy. 
  • Unemployment – a term that refers to individuals who are employable and actively seeking a job, but are unable to find a job at the present moment. It is often measured by the unemployment rate (dividing the number of unemployed people by the total number of people in the workforce).
  • NFP (Non-farm payrolls) – key labour market report from the United States released monthly, usually on the first Friday of every month. The headline figure measures the number of jobs added or lost in the US economy (excluding the farming industry) over the last month. The report is of great importance for the markets, as it shows the performance of the world’s largest economy.
  • GDP – the term stands for gross domestic product, which measures the monetary value of final goods and services (those that are bought by the final user) produced in a country in a given period of time, usually a quarter or a year. It has become widely used as a reference point for the health of the economy (either national or global).
  • Interest rates – in general, this refers to the amount one is charged for borrowing money – a percentage of the total amount of the loan. As far as the financial markets are concerned, key benchmark interest rates are set by central banks. This impacts the economic growth, inflation and the strength of the local currency.
  • Hawks and dove – terms describing the preferable monetary policy of certain people, usually with regard to central bankers. Hawks favour tight policies (e.g. higher interest rates) in order to keep inflation in check. On the other hand, doves opt for expansionary monetary policies (e.g. lower interest rates or QE), which are the measures expected to boost the economy. 
  • Macroeconomic calendar – a calendar that contains economic releases, which are crucial from investors’ and traders’ perspective. Day traders usually focus on the day ahead, thus looking for the most important events during the upcoming trading day. The most important economic prints are usually marked with three dots/stars – such reports often “move” the markets. 
  • Central bank – a financial institution that is responsible for overseeing the monetary system and conducting monetary policy. Most central banks have specified goals, such as keeping stable prices or achieving maximum employment. In order to pursue its goals, a central bank is easing or tightening the money supply and availability of credit (e.g. interest rates mechanism) or sets requirements for the banking industry. 
  • ECB – the European Central Bank. The central bank of the 19 European Union countries which use the euro. Its primary objective is to maintain price stability. The Bank is headquartered in Frankfurt, Germany. The current President of the ECB is Christine Lagarde. 
  • Fed – the Federal Reserve System is the central bank of the United States. Its main goals include: stabilising prices, maximising employment and moderating long-term interest rates. The Federal Reserve System consists of 12 Federal Reserve Banks. The current Chair of the Fed is Jerome Powell.
  • FOMC – the Federal Open Market Committee. The monetary policymaking body of the Federal Reserve System. It is composed of 12 members. The FOMC schedules eight meetings per year, but can also hold unscheduled meetings if necessary. There is a policy statement issued after each meeting. The document summarises the Committee’s economic outlook and decisions taken during the meeting.
  • BoJ – the Bank of Japan. The central bank of Japan, responsible for issuing and handling the Japanese currency (the yen - JPY) and implementing monetary policy among other activities. The Bank is headed by the Governor Haruhiko Kuroda.
  • BoE – the Bank of England is the central bank of the United Kingdom. It issues the currency (the pound sterling – GBP) and oversees monetary policy. The current Governor of the BoE is Andrew Bailey.
  • RBA – the Reserve Bank of Australia is the central bank of Australia. Its duty is to contribute to the stability of the currency (the Australian dollar – AUD), full employment, and the economic prosperity and welfare of the Australian people. The current Governor of the RBA is Philip Lowe.

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

Related articles

9 minutes
What Is Fundamental Analysis?

Read more
6 minutes
Market Sentiment and Positioning

Read more
3 minutes
Yield Meaning | What is A Yield?

Read more

If you are looking for more

Forex Commodities Indices Technical analysis Stocks Fundamental analysis CFDs ETFs Platform Glossary Guides ABC of Investing XTB Services Become a Trader Media Investment Plans Current news of XTB isa

Join over 1 Million investors from around the world

Start investing Download the app Download the app

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol Expiration date 17 October 2024
adobe_unique_id Expiration date 16 October 2025
test_cookie Expiration date 1 March 2024
SESSID Expiration date 9 September 2022
__hssc Expiration date 16 October 2024
__cf_bm Expiration date 16 October 2024
intercom-id-iojaybix Expiration date 13 July 2025
intercom-session-iojaybix Expiration date 23 October 2024
xtbCookiesSettings Expiration date 16 October 2025
xtbLanguageSettings Expiration date 16 October 2025
TS5b68a4e1027
countryIsoCode
userPreviousBranchSymbol Expiration date 16 October 2025
TS5b68a4e1027
_cfuvid
intercom-device-id-iojaybix Expiration date 13 July 2025
__cfruid
__cf_bm Expiration date 16 October 2024
__cf_bm Expiration date 16 October 2024
_cfuvid
adobe_unique_id Expiration date 16 October 2025
TS5b68a4e1027
_cfuvid
xtbCookiesSettings Expiration date 16 October 2025
SERVERID
TS5b68a4e1027
__hssc Expiration date 16 October 2024
test_cookie Expiration date 1 March 2024
intercom-id-iojaybix Expiration date 13 July 2025
intercom-session-iojaybix Expiration date 23 October 2024
intercom-device-id-iojaybix Expiration date 13 July 2025
UserMatchHistory Expiration date 31 March 2024
__cf_bm Expiration date 16 October 2024
__cf_bm Expiration date 16 October 2024
__cf_bm Expiration date 16 October 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
_gid Expiration date 9 September 2022
_gat_UA-22576382-1 Expiration date 8 September 2022
_gat_UA-121192761-1 Expiration date 8 September 2022
_ga_CBPL72L2EC Expiration date 16 October 2026
_ga Expiration date 16 October 2026
AnalyticsSyncHistory Expiration date 8 October 2022
af_id Expiration date 31 March 2025
afUserId Expiration date 1 March 2026
af_id Expiration date 1 March 2026
AF_SYNC Expiration date 8 March 2024
__hstc Expiration date 14 April 2025
__hssrc
_vwo_uuid_v2 Expiration date 17 October 2025
_ga_TC79BEJ20L Expiration date 16 October 2026
_vwo_uuid Expiration date 16 October 2025
_vwo_ds Expiration date 15 November 2024
_vwo_sn Expiration date 16 October 2024
_vis_opt_s Expiration date 24 January 2025
_vis_opt_test_cookie
_ga Expiration date 16 October 2026
_ga_CBPL72L2EC Expiration date 16 October 2026
__hstc Expiration date 14 April 2025
__hssrc
_ga_TC79BEJ20L Expiration date 16 October 2026
af_id Expiration date 31 March 2025
afUserId Expiration date 1 March 2026
af_id Expiration date 1 March 2026
AF_SYNC Expiration date 8 March 2024
_gcl_au Expiration date 14 January 2025
AnalyticsSyncHistory Expiration date 31 March 2024
_gcl_au Expiration date 14 January 2025

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
MUID Expiration date 10 November 2025
_omappvp Expiration date 28 September 2035
_omappvs Expiration date 16 October 2024
_uetsid Expiration date 17 October 2024
_uetvid Expiration date 10 November 2025
_fbp Expiration date 14 January 2025
fr Expiration date 7 December 2022
muc_ads Expiration date 16 October 2026
lang
_ttp Expiration date 10 November 2025
_tt_enable_cookie Expiration date 10 November 2025
_ttp Expiration date 10 November 2025
hubspotutk Expiration date 14 April 2025
YSC
VISITOR_INFO1_LIVE Expiration date 14 April 2025
hubspotutk Expiration date 14 April 2025
_uetsid Expiration date 17 October 2024
_uetvid Expiration date 10 November 2025
_ttp Expiration date 10 November 2025
MUID Expiration date 10 November 2025
_fbp Expiration date 14 January 2025
_tt_enable_cookie Expiration date 10 November 2025
_ttp Expiration date 10 November 2025
li_sugr Expiration date 30 May 2024
guest_id_marketing Expiration date 16 October 2026
guest_id_ads Expiration date 16 October 2026
guest_id Expiration date 16 October 2026
MSPTC Expiration date 10 November 2025
IDE Expiration date 10 November 2025
VISITOR_PRIVACY_METADATA Expiration date 14 April 2025
guest_id_marketing Expiration date 16 October 2026
guest_id_ads Expiration date 16 October 2026
guest_id Expiration date 16 October 2026
muc_ads Expiration date 16 October 2026
MSPTC Expiration date 10 November 2025
IDE Expiration date 10 November 2025

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description
personalization_id Expiration date 16 October 2026
UserMatchHistory Expiration date 8 October 2022
bcookie Expiration date 16 October 2025
lidc Expiration date 17 October 2024
lang
bscookie Expiration date 8 September 2023
li_gc Expiration date 14 April 2025
bcookie Expiration date 16 October 2025
lidc Expiration date 17 October 2024
bscookie Expiration date 1 March 2025
li_gc Expiration date 14 April 2025
personalization_id Expiration date 16 October 2026

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence
Language

Changing the language affects the change of regulator