Read more
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.

ZERO COMMISSION FOR STOCKS AND ETFS INVESTING

*For monthly turnover up to 100,000 EUR (then comm. 0.2%, min. 10 EUR). 0.5% currency conversion cost may apply. The financial instruments we offer are risky. Invest responsibly.

Open account
  • 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 doves – 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.

ZERO COMMISSION FOR STOCKS AND ETFS INVESTING

*For monthly turnover up to 100,000 EUR (then comm. 0.2%, min. 10 EUR). 0.5% currency conversion cost may apply. The financial instruments we offer are risky. Invest responsibly.

Open account

Related articles

3 minutes
What Are Non-Farm Payrolls (NFP)?

Read more
2 minutes
What Is a CFD?

Read more
6 minutes
Market Sentiment and Positioning

Read more

If you are looking for more

Commodities Indices Technical analysis Stocks Fundamental analysis CFDs ETFs Platform Glossary Guides ABC of Investing XTB Services Become a Trader

Join over 1 000 000 XTB Group Clients from around the world

Start trading Download the app Download the app
The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits

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 cc 25 October 2024
test_cookie cc 24 October 2024
adobe_unique_id cc 24 October 2025
__hssc cc 24 October 2024
SESSID cc 2 March 2024
__cf_bm cc 24 October 2024
intercom-id-iojaybix cc 21 July 2025
intercom-session-iojaybix cc 31 October 2024
xtbCookiesSettings cc 24 October 2025
TS5b68a4e1027
countryIsoCode
xtbLanguageSettings cc 24 October 2025
userPreviousBranchSymbol cc 24 October 2025
TS5b68a4e1027
intercom-device-id-iojaybix cc 21 July 2025
__cf_bm cc 24 October 2024
__cfruid
__cfruid
__cf_bm cc 24 October 2024
__cf_bm cc 24 October 2024
_cfuvid
adobe_unique_id cc 24 October 2025
_cfuvid
TS5b68a4e1027
xtbCookiesSettings cc 24 October 2025
SERVERID
TS5b68a4e1027
__hssc cc 24 October 2024
test_cookie cc 1 March 2024
__cf_bm cc 24 October 2024
_cfuvid
_cfuvid
__cf_bm cc 24 October 2024
__cf_bm cc 24 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 cc 9 September 2022
_gat_UA-98728395-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_gcl_au cc 22 January 2025
_ga_CBPL72L2EC cc 24 October 2026
_ga cc 24 October 2026
__hstc cc 22 April 2025
__hssrc
_vwo_uuid_v2 cc 25 October 2025
_ga_TC79BEJ20L cc 24 October 2026
_vwo_uuid cc 16 October 2025
_vwo_ds cc 15 November 2024
_vwo_sn cc 16 October 2024
_vis_opt_s cc 24 January 2025
_vis_opt_test_cookie
af_id cc 23 February 2025
afUserId cc 25 January 2026
af_id cc 24 January 2026
AF_SYNC cc 1 February 2024
_ga cc 24 October 2026
_gid cc 25 October 2024
_ga_CBPL72L2EC cc 24 October 2026
__hstc cc 22 April 2025
__hssrc
_ga_TC79BEJ20L cc 24 October 2026
_gcl_au cc 22 January 2025
AnalyticsSyncHistory cc 31 March 2024

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 cc 18 November 2025
_omappvp cc 6 October 2035
_omappvs cc 24 October 2024
_uetsid cc 25 October 2024
_uetvid cc 18 November 2025
_fbp cc 22 January 2025
fr cc 7 December 2022
_ttp cc 22 January 2025
_tt_enable_cookie cc 22 January 2025
_ttp cc 22 January 2025
hubspotutk cc 22 April 2025
IDE cc 10 November 2025
YSC
VISITOR_INFO1_LIVE cc 22 April 2025
hubspotutk cc 22 April 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 25 October 2024
_uetvid cc 18 November 2025
_ttp cc 22 January 2025
MUID cc 18 November 2025
_fbp cc 22 January 2025
_tt_enable_cookie cc 22 January 2025
_ttp cc 22 January 2025
li_sugr cc 30 May 2024
guest_id_marketing cc 24 October 2026
guest_id_ads cc 24 October 2026
guest_id cc 24 October 2026
muc_ads cc 24 October 2026
VISITOR_PRIVACY_METADATA cc 22 April 2025
MSPTC cc 18 November 2025
IDE cc 18 November 2025
MSPTC cc 18 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
bcookie cc 24 October 2025
lidc cc 25 October 2024
UserMatchHistory cc 31 March 2024
bscookie cc 1 March 2025
li_gc cc 22 April 2025
bcookie cc 24 October 2025
li_gc cc 22 April 2025
lidc cc 25 October 2024
personalization_id cc 24 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