Macroeconomics explores key areas of economic life at a national, regional or global level. These include GDP growth, inflation, unemployment, etc.

Fundamental analysis examines various macroeconomic indicators to identify certain trends and predict their impact over the value of currencies. For example, high GDP growth, combined with rising inflation and rising interest rates in the US, versus declining growth, inflation and interest rates in Japan, may indicate upside potential in the USD/JPY pair.

Macroeconomic indicators can be leading, lagging or coinciding.

Next: Gross Domestic Product (GDP)

Previous: What is Fundamental Analysis