Fundamentals
The underlying economic facts that drive a market: interest rates, growth, inflation, trade, politics.
In plain English
The underlying economic facts that drive a market: interest rates, growth, inflation, trade, politics.
Fundamentals are the 'why' behind a price. For a currency, that means its central bank's policy, the economy's health, inflation, trade flows and political stability.
Fundamental analysis studies these. Fundamentals tend to drive long-term trends, while short-term moves can ignore them for a while.
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