It is important for the traders to spend the time to understand the underlying forces moving the market
(fundamentals) as well as what is happening in price, volume and volatility (technicals.)
Fundamental analysis is the analysis of the economical and political condition of the countries, the currencies of
which are traded in the forex market. The purpose of this analysis lies in the estimation of the possible influence by
the economic forces on the currency rates fluctuation. And higher yields available in one economy should
fundamentally strengthen its currency.
All information could be divided into two major categories: predictable and unpredictable factors.
Unpredictable factors include sudden political occurrences, military acts, natural and other force-major cataclysms.
It is impossible to forecast nor to estimate the influence of such occurrences on the market. Unlikely a beginning
trader should risk entering the market during strong rate fluctuations being influenced by the unpredictable factors.
Predictable factors contain the macro-economical news. The trader knows all about these factors: publication date
and time, forecasted value of the indicators estimated by the market experts. But you can never be sure of the
market reaction to the indicator factual value, if it eventually differs from the forecasted.
Forex-Metal company provides its customers with weekly market fundamental analysis and news calendar free of
any charge.
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