| Traders who predict price action by using | | | | trade. |
| fundamental analysis are fundamentalists, whereas | | | | The time of release of the economic indicators are |
| the traders who predict the same by using technical | | | | known to the economic fundamentalists. Publication |
| analysis are commonly referred as technicians. These | | | | of these important statistical data and information |
| two approaches are usually used by a lot of traders. | | | | are dully noted, specially focusing on the date and |
| The supply and demand for currencies is a result of | | | | time. |
| observable economic processes assumed by the | | | | Fundamental analysis is a must thing for the traders in |
| fundamentalist. The factors that drive the supply and | | | | this modern matrix economic condition. To maximize |
| demand within the market are categorized as pest | | | | the knowledge, skills and understanding of the |
| (political, social, economic and technological), which is | | | | international or global market, there is a requirement |
| keenly observed by the players. | | | | of a thorough learning and focused observation of |
| What to do! Is the basic question asked by every | | | | the current market scenario. Economic conditions can |
| investor throughout the world. This is merely due to | | | | be predicted efficiently with less margin of mistake, |
| the fact that a reflection of the balance between | | | | by carrying out the fundamental analysis. This also |
| demand and supply for currencies is its prices. | | | | allows interpreting the current situation as well as the |
| Traders are relieved because they can easily predict | | | | where-about of the economy. |
| the price actions, by interpreting and analyzing the | | | | Fundamental analysis has some limitations too. In |
| data and information generated within the trade. | | | | some cases it does not give specific exit and entry |
| These data and information basically includes interest | | | | points, which sometimes becomes a risk factor for |
| rates, foreign investments, gross domestic product, | | | | the traders. For a specific trading strategy, the |
| balance of trade etc. | | | | approach of translating all the unique data and |
| Apart from price action, traders involved in | | | | information regarding entry and exit points is difficult |
| fundamental analysis can go through any factors or | | | | to formulate. |
| criteria. Interest rates, unemployment, inflation, | | | | That is why the traders generally use technical |
| recession, economic growth rates and other | | | | analysis to take decision regarding the time to enter |
| macro-economic factors are the most important | | | | and exit the trade, apart from utilizing the |
| economic factors, which are attractive to the | | | | fundamental analysis approach to understand the |
| different fundamental analysts. Traders closely | | | | dynamic, flexible and unexpected movements of the |
| analyses and monitors, the data and information | | | | prices. |
| generated through the interest rates and international | | | | |