Ringing Ceders

Although most foreign currency traders today base their trading upon technical analysis, many traders also make use of traditional fundamental analysis, which is based upon the principle that currencies move in response to various factors including political events, economic numbers, changes in trading patterns, interest rates, employment figures and a great deal more.

Fundamental analysis is complex and requires considerably knowledge and experience to master, which is one reason why so many traders are now drawn towards technical analysis in the first instant and use fundamental analysis only to a limited degree while they acquire the necessary knowledge and skill.

If you are just learning forex trading then, despite the modern tendency to steer people away from fundamental analysis, it is an area that you need to study and which will hold you in good stead later on.