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Forex Market Analysis For A Beginner

Forex market analysis is the process of considering which currency within a pair is likely to go stronger over a particular period of time. Forex traders can then use this knowledge to buy the currency that they expect to appreciate in value, or to sell the currency they think will decline in value. To help make these predictions, forex traders will study a range of sources. These include fundamental factors, such as the state of the nations’ economies, the price of relevant assets such as oil, or any major news events affecting international economics. Technical factors are also considered, such as the recent price history of the currency relative to its historical averages. File Photo: US Dollar Bills and Coins Fundamental Analysis Traders who use fundamental analysis may look at factors such as the interest rate and inflation outlook for the currencies of the pair they intend to buy or sell. They will also look at factors such as employment, which may provide insight into future int