Fundamental Analysis - Econometric Models

For example, say, a forecaster for a Canadian company has researched factors he
thinks would affect the USD/CAD exchange rate.
From his research and analysis, he found that the most influential factors are: the
interest rate differential (INT), the GDP growth rate differences (GDP), and the
income growth rate (IGR) differences.
The econometric model he comes up with is
USD/CAD (1 year) = z + a(INT) + b(GDP) + c(IGR)
Now, using this model, the variables mentioned, i.e., INT, GDP, and IGR can be used
to generate a forecast.
The coefficients used (a, b, and c) will affect the exchange rate and will determine its
direction (positive or negative).