Fundamental analysis uses macroeconomic data to forecast exchange rates.

Question

Quizplus · Accepted Answer

Fundamental analysis is the study of economic, financial and other qualitative and quantitative factors related to an asset or currency in order to make financial forecasts and investment decisions. This involves analyzing macroeconomic data such as inflation rates, GDP, political events, and global trade to predict future exchange rate movements. Therefore, the statement is true.

Fundamental Analysis Uses Macroeconomic Data to Forecast Exchange Rates