Why Fundamental Analysis in Forex Really Matters?

[aryanshirivastav]

Most of us focus on charts, indicators, and patterns. But let’s be real—if you’re only looking at the technical side, you’re missing the bigger picture. That’s where fundamental analysis in forex comes in.

Things like central bank decisions, inflation numbers, jobs data, or even political events can push currencies way harder than any RSI or MACD signal. Just look at how the dollar reacts every time U.S. jobs data or Fed announcements drop.

Personally, I use fundamentals to set my bias (bullish or bearish) and then rely on technical to time my entries/exits. Works much better than trading blind off charts alone.

What about you guys—do you lean more on fundamentals, technical, or a mix of both?

 

[Zerologic]

While not always the case, fundamental news often influences the market, particularly interest rates, inflation, the labor market, etc. However, technical analysis is also important. Typically, I like to combine it with a risk management setup.

 

[MoonTrekkerZ]

Fundamental analysis in forex really matters because it helps traders understand the true value of a currency. By analyzing economic indicators, interest rates, inflation, and political stability, traders can predict long-term market trends. This approach provides deeper insights, reduces emotional trading, and supports smarter, more strategic investment decisions in the forex market.

 

[rmufti68]

Some goes with the fundamentals while some also go with the technicals, some also churn up both of these to get the bigger picture of the markets however the risks are always there in the forex so better to use risk management and cut off trades early before they can blow out the entire account.