Fundamental analysis: what moves markets

Prices reflect expectations

Markets continuously price in what participants expect to happen. New information moves prices mainly when it differs from those expectations — which is why a 'good' economic number can be followed by a falling market if something better was already priced in.

Currencies: rates and macro data

Interest-rate decisions and the expectations around them are the dominant driver of currency valuations. Inflation prints, employment data and central-bank communication all feed those expectations.

Economic calendars list scheduled releases in advance. Around major releases, spreads can widen and prices can gap — a practical risk consideration, not just a theoretical one.

Indices and shares: earnings and growth

Equity markets respond to corporate earnings, guidance and the discount rates implied by bond yields. Index instruments aggregate this across dozens or hundreds of companies, which dilutes single-company risk but concentrates macro sensitivity.

Commodities: supply and demand

Energy and metals respond to production decisions, inventories, geopolitics and the economic cycle. Gold additionally trades as a store-of-value asset, often moving with real interest rates and the US dollar.