Fundamental analysis studies the economic forces behind a currency’s value — interest rates, inflation, growth, employment, and central-bank policy. Traders use it to judge whether a currency is likely to strengthen or weaken over time, in contrast to technical analysis, which focuses on price charts.
Forex Term
Fundamental Analysis
Judging a currency by economic data and central-bank policy.
Example
A trader expecting a rate hike may buy that currency ahead of the central-bank meeting.
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Risk
Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.