Analyzing the future on the basis of fundamental relationships between economic variables and exchange rates.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
The practice of using fundamental analysis to predict future exchange rates. This involves looking at all quantitative and qualitative aspects that might affect exchange rates, including macroeconomic data and political factors. Critics contend that fundamental forecasting is limited as some of the data it includes is difficult to quantify and it may miss some data that have an immediate effect of exchange rates.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved