Macroeconomic factors that affect the currency markets.
Fundamentals include the basic qualitative and quantitative information that contributes to a company's financial or economic well-being, security, or currency and their subsequent financial valuation. Where qualitative information includes elements that cannot be directly measured, such as management experience, quantitative analysis (QA) uses mathematics and statistics to understand the asset and predict its movements.
In business and economics, fundamentals represent the primary characteristics and financial data necessary to determine the stability and health of an asset. This data can include macroeconomic or large-scale factors and microeconomic or small-scale factors to set a value on securities or businesses.
Analysts and investors examine these fundamentals to develop an estimate of whether the underlying asset is considered a worthwhile investment and fair valuation in the market. For businesses, information such as profitability, revenue, assets, liabilities, and growth potential are considered fundamentals. Through fundamental analysis, you may calculate a company's financial ratios to determine the feasibility of the investment.