Fundamental analysis is the art of identifying what drives an asset's fair value and whether the current price reflects it. In forex, fundamentals are primarily macroeconomic.
Interest rate differentials
Money flows toward higher yields. A country raising rates while others hold tends to see its currency strengthen, as global capital reallocates.
Economic growth
GDP, employment and PMI data shape expectations for central bank policy. Strong growth raises the probability of rate hikes; weakness raises the probability of cuts.
Using fundamentals with technicals
Fundamentals answer "which direction", technicals answer "when" and "where". Combining both gives you a higher-probability framework.
