Lesson 1 of 104:023 Sources
What is fundamental analysis, and why technicals alone aren't enough

Recorded. Publishing soon
Educational content, not investment advice. Nour explains how markets work. She never tells you what to buy or sell.
Fundamental analysis studies why prices move: interest rates, inflation, growth, jobs and supply and demand. Technical analysis helps with where and when; you need both.
- A currency's price is, in the end, the price of an economy. FX turnover reached about $9.6 trillion a day in April 2025, with the dollar on one side of 89% of trades.
- Markets move on the surprise: the gap between the actual figure and what was expected.
- Common mistakes: ignoring the news, or chasing every headline.
- Practice: check the economic calendar daily; many disciplined traders trade smaller or wait around major releases.
Quick check
Three questions. Pick an answer to see why.
1.Which question does fundamental analysis mainly answer?
2.Everyone expected a rate hike, and the hike happened. What is the most likely reaction?
3.About how much was traded in the FX market per day in April 2025 (BIS)?
Sources
Every fact in this lesson is backed by the sources below.
- 1.CME Group – Using Fundamental Analysis When Evaluating TradesDefinition: fundamental analysis uses economic data and industry conditions to see how supply and demand could move price, now and in the future
- 2.BIS – Triennial Survey 2025: global FX trading hits $9.6 trillion a dayFX trading reached $9.6 trillion per day in April 2025; the US dollar was on one side of 89% of trades
- 3.Reserve Bank of Australia – Drivers of the Australian Dollar Exchange RateInterest-rate differentials are a key driver of demand for a currency (used in the EUR/USD example)
Educational content, not investment advice. Risk warning: trading forex, CFDs, gold and crypto carries a high level of risk and may not be suitable for everyone. You can lose more than you put in. Souq Daily is an education platform. Nothing here is investment advice, a recommendation or an offer, and past performance does not predict future results.