To help you understand Forex basic analysis, it is broken into two components.

Qualitative analysis focuses on decisions, events, and occurrences that affect a given currency during a certain time period.

Quantitative fundamental analysis is a sort of fundamental analysis in which trading choices are made only on data such as inflation, unemployment rates, and other such variables.

Fundamental analysis in forex involves evaluating various economic indicators and factors to determine a currency's intrinsic value. Key types include:

1. Economic Indicators: Analyzing metrics like GDP, unemployment rates, and inflation to gauge a country’s economic health and currency strength.

2. Interest Rates: Monitoring central bank policies and interest rate changes, as they influence currency value through investment flows.

3. Political Stability: Assessing political events and stability, which can impact investor confidence and currency stability.

4. Trade and Current Account Balances: Evaluating a country’s trade surplus or deficit to predict currency movements based on supply and demand.

5. Market Sentiment: Gauging investor sentiment through news and reports, which can drive short-term currency movements.

These elements collectively aid in forecasting currency trends and making informed trading decisions.