Charts show what price is doing. Fundamentals explain why.
WHYFundamentalWhy price should move: rates, inflation, growth, politics.
WHENTechnicalWhen and where to act: levels, patterns, signals.
What moves currencies long-term
- Interest rates and expectations of future rates (the big one).
- Inflation, which drives rate expectations.
- Economic growth: GDP, jobs, spending.
- Politics and risk: elections, wars, trade fights.
- Capital flows: investors chasing the best returns.
Wick says
Imagine currencies as shares in a country. Strong economy, rising rates, stable politics: people want to buy in.
Do you need fundamentals?
You can trade purely technically. But knowing when the big releases are and what the market expects will save you from a lot of nasty surprises.
Key takeaways
- Fundamentals explain direction over weeks and months.
- Interest rates and inflation matter most.
- At minimum, know the calendar before you trade.