Lesson 7 · Advanced · 9 min
Fundamental analysis
Interest rates, inflation, the labour market and company reports — what moves prices over time.
Interest rates
The central bank rate is the price of money. When the Fed raises rates, the dollar usually strengthens while gold and stocks come under pressure. The market reacts not only to the decision but to signals about future moves.
Inflation and the labour market
The Consumer Price Index (CPI) and the employment report (NFP) show how “hot” the economy is. High inflation and a strong labour market raise the odds of rate hikes.
Company reports
US companies publish quarterly revenue and earnings reports (Form 10-Q; annual — 10-K). The share price reacts to the comparison with analysts’ expectations and to the company’s guidance for the next period.
Where to follow
The economic calendar has the schedule of events; the Reports & publications section has the primary sources: the Fed, the ECB, the IMF, the Bureau of Labor Statistics and the SEC EDGAR filings database.
Key takeaways
- Central bank rates drive currencies
- The market trades the surprise vs expectations
- Read primary sources, not retellings