Download Fundamental Analysis

yes no Was this document useful for you?
   Thank you for your participation!

* Your assessment is very important for improving the work of artificial intelligence, which forms the content of this project

Document related concepts

International status and usage of the euro wikipedia, lookup

Fixed exchange-rate system wikipedia, lookup

Currency war wikipedia, lookup

Reserve currency wikipedia, lookup

Bretton Woods system wikipedia, lookup

Currency War of 2009–11 wikipedia, lookup

1973 oil crisis wikipedia, lookup

This presentation is being provided solely for informational purposes. Mercantile
Exchange Nepal Limited does not warrant the accuracy or completeness of any
information provided in this presentation and such information is provided without
any correctness or condition of any kind. Neither Mercantile Exchange Nepal Limited
nor any other person associated with the creation of this presentation or its contents
shall be liable or responsible to any person for any harm, loss or damage that may
arise in connection with the use of this presentation, including without limitation, any
indirect, third party, or consequential damages.
Fundamental Analysis
 The study of the factors that affect physical supply and demand.
 General economic principle says demand and supply determine price.
 Demand and supply situation helps predicting the price of commodities.
– Demand > Supply = Higher Prices
– Supply >Demand = Lower Prices
Factors Affecting Demand & Supply
 Production and consumption Level
 Trade practices
 Government interference
 Taxes
 Political Events
 Weather
 Transportation cost
 Technological change, etc.
Factors Affecting Commodities Price
 Every major economic indicator released from major economies impact their
respective currencies.
 Positive economic data strengthens the currency and negative data weakens the
 This impacts the price of commodities accordingly.
 US dollar is regarded as the strongest currency that impacts commodity prices.
 Data to watch
– State of US and Euro zone economy
– Factors that affect the US dollar
– Demand of jewelry in Indian and Chinese market
– Interest rate policy of major economies around the globe
– IMF announcement regarding it’s gold holdings
– Seasonal factors
 During the festival season in India and China, price tend to normally rise.
Crude Oil
 Crude oil
– Major Reserve
 Saudi Arabia, Iraq, Canada, Iran and Kuwait
– Largest Producer
 Saudi Arabia, Russia, US, Iran
– Major Consumer
 US, China, Japan, Euro zone
– OPEC countries control 40% supply of crude oil globally.
For further updates, Like us on Facebook!