What is Fundamental News in Forex Market?

Fundamental news has a significant impact on the forex market. It refers to economic, social, and political events that affect currency prices. These news releases are scheduled according to a global economic calendar, and traders closely monitor them.

Overview:

Fundamental news directly affects market sentiment. When changes occur in a country's economy, such as GDP, inflation, employment, and interest rates, they also affect currency prices. If a country's economy is growing, its currency value also increases, and if the economy is contracting, the currency value decreases.

Examples:

• If a country increases its interest rates, the value of its currency also increases.
• If a country's GDP growth rate increases, the value of its currency also increases.
• If there is political instability in a country's election, the value of its currency decreases.