Remember there are two currencies at hand. Just because there is inflation in one there may be stronger in the other. The difference between fundamental and news trading is - you need an economic calender, fundamental - you need to study business cycles, past charts of the economic data, commodities that coincide with the currency, inflation with both currencies. To be honest, fundamental trading is quite tough, but that is not to say that it isn't profitable. anyways hope that clears up the difference between the two.
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