Yashapalsinh Dharmendrasinh Rathod

In efficient financial markets, **fundamental analysis** may have limited value because prices already reflect all available information, including economic data, news, and company performance. According to the **Efficient Market Hypothesis (EMH)**, it's impossible to consistently outperform the market using fundamental analysis because prices adjust quickly to new information.

However, in **less-than-perfectly-efficient markets**, or when markets are influenced by sentiment or temporary mispricings, fundamental analysis can still provide an edge. It helps traders identify undervalued or overvalued assets and make informed decisions, especially in the medium to long term.

1. Interest Rates: Higher rates attract foreign capital, strengthening the currency.
2. Economic Data: Key reports like GDP, inflation, and employment impact currency value.
3. Central Bank Actions: Central banks' monetary policies (rate hikes or cuts) heavily influence currency movements.
4. Geopolitical Events: Political instability, wars, or elections can cause volatility.
5. Trade Balance: A surplus strengthens a currency, while a deficit weakens it.

• Technical Analysis of the Financial Markets by John J. Murphy
• The New Trading for a Living by Dr. Alexander Elder
• Japanese Candlestick Charting Techniques by Steve Nison
• Technical Analysis Explained by Martin J. Pring
• Swing Trading: The Definitive Guide by Omar Bassal, CFA
• 1. The Intelligent Investor by Benjamin Graham
  2. Security Analysis by Benjamin Graham and David Dodd
  3. Common Stocks and Uncommon Profits by Philip Fisher
  4. Financial Shenanigans by Howard Schilit
  5. Warren Buffett Accounting Book by Stig Brodersen and Preston Pysh