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Intrinsic value is the difference between the strike price and the share price, if the stock price is above the strike.
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This is why the Governing Council has repeatedly emphasised that a very substantial degree of monetary accommodation is still needed for underlying inflation pressures to build up, and to support headline inflation in the medium term.
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Since fundamental analysis is about looking at the intrinsic value of an investment, its application in forex entails looking at the economic conditions that affect the valuation of a nation's currency. Trading fundamental analysis gives a forex trader a deeper understanding of how the market reacts to a variety of events. A deficit would mean the country is importing more than exporting, while a surplus would indicate more exports than imports.

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