Fundamental analysis is crucial to trading for it provides events that mark the economic calendar. Financial news is decisive for the market and plays greatly over investors’ sentiment as well. Fundamental analysis deals with economic conditions, and news pertaining to major economies’ Gross Domestic Product (GDP), inflation rates, employment/unemployment levels and business climate surveys among others. These variables have a direct impact on the financial world and knowing the consequent changes are vital for the binary options trading as well. For instance, following U.S disappointing figures about industrial production, the Federal Reserve might wish to implement monetary policies to boost the sector. This announcement will have a direct impact on the market.
Positive economic data from a Country E.g.: Positive GDP from the U.K might push the GBPUSD pair to the bulls on the chart. Whereas negative or low GDP figures, might push the pair to the bears.