Fundamental analysis is an analytical method to judge the exchange rate trend based on the study of the current situation and change of macro basic factors and their impact on the trend, and draw the conclusion of the supply and demand relationship between them.
The research objects include economy, politics, military affairs, humanities, geography, emergencies and so on.
It is usually used to judge the trend of long-term exchange rate changes.
The long-term trend of exchange rate based on fundamental analysis is reliable and advanced.
However, its disadvantage is that it cannot provide the start and stop points of exchange rate rise and fall and the time of change.
And in some cases, changes in exchange rates do not strictly follow changes in fundamentals.
Therefore, the analysis of fundamentals must be combined with technical and market psychology and other factors to study.
