What is Fundamental Analysis?

Imagine you’re trying to guess which country’s money is the strongest. To figure it out, you need to learn about the country itself. Is its economy growing? Are people working and spending? Are there any big news events happening there?

This is what fundamental analysis does. It’s like being a detective for the forex market. For example, if a country raises its interest rates, people around the world might want to save or invest there, making its currency stronger. If a country’s economy is struggling or there’s political trouble, its currency might lose value.

Fundamental analysis isn’t about staring at charts; it’s about understanding the bigger picture—how the world affects currencies. By knowing what’s happening in different countries, you can make smarter decisions when trading. It’s like solving a puzzle, one piece at a time.