Inflation and interest rate differentials between the U.S. and foreign countries are examples of variables that could be used in fundamental forecasting.

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Inflation and interest rate differentials are important economic indicators that can assist in forecasting the future trends and growth of a country's economy. These factors are commonly used in fundamental analysis, which is a method of predicting market trends based on economic and financial data. By looking at these variables, investors and analysts can gain insight into things like central bank policy, fiscal policy, and international trade, which can help them make more informed investment decisions.

Inflation and Interest Rate Differentials Between the U