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*How does the market work?* To fully understand how the market is operating, we need to understand two key things: *a) Offering Fair Value* *b) Seeking Liquidity*

*Fundamentals (USD)* Fundamentals that affect USD dollar: 3. Interest Rate – When the Federal Open Market Committee (FOMC) members vote on where to set the rate . Every 2 months. High Interest Rate = Positive for USD Buy/Bullish. Low / Unchanged Interest Rate = Negative for USD Sell/Bearish (Only trade Gold).

*Why is this useful ?* We can use this information to either trade towards Liquidity or trade off of Fair Value Areas. In this way we can capitalize on both scenarios.

• A fair value gap refers to a situation where there is a difference between the fair value of a currency pair and its current market price. This concept is similar to fair value discrepancies in other financial markets, where the trading price of an asset diverges from its estimated intrinsic value. • When traders and investors perceive that the current exchange rate does not accurately reflect these underlying fundamentals, they might consider the currency pair to be either overvalued or undervalued, creating a fair value gap. • For example, if the fair value calculations based on economic fundamentals suggest that EUR/USD should be trading at 1.2000, but the current market price is 1.1800, there is a fair value gap indicating that the euro is undervalued against the dollar according to the model or analysis used.

*Fundamentals (USD)* :* Fundamentals that affect USD dollar: 1. *Non-Farm Payroll (NFP)* – Number of paid part-time or fulltime jobs in the public sector, excluding the farming sector. Held on the 1st Friday of each month. 2. *High Employment figure* = Positive for USD Buy/Bullish. Low Employment figure = Negative for USD Sell/Bearish. Low Employment figure = Negative for USD Sell/Bearish.

*This week we will be looking at Fundamental Analysis*

😃😃 *Hi Fam. Let stay tuned for our next chapter framework as we continue to dive deep into our trading journey.* *Stay Blessed .Cheers* 🥂

*The fair value of a currency pair is often determined by fundamental factors such as:* • Interest rate differentials between the two currencies • Economic indicators and data releases • Political stability and economic policies • Trade balances and capital flows • Inflation rates

However, it's important to note that fair value gaps can persist for extended periods, and market prices can be influenced by many factors beyond fundamental analysis. Additionally, different models and assumptions can lead to varying estimates of fair value, so what one trader considers a gap might not be seen the same way by another. As a result, trading based on fair value gaps involves risk and requires careful analysis and consideration of market conditions