Fundamental Analysis also known as FA (Fundamental Analysis) is one of the methods of analysis that uses economic news, geopolitics and currency policy of a country.
It is very different from Technical Analysis which only uses data from the price of a currency.
It is important to understand both Fundamental and Technical ways to make trading decisions, whether to BUY or SELL.
The FA uses economic data on what happens to a country’s economy, and studies what the impact is on the value of a currency.
There are many factors that impact the currency, namely monetary policy set by the government, capital and trade flows, domestic production, unemployment and many more.