Traders can determine a currency’s value and whether a country’s economy is growing or contracting by using fundamental analysis. Long-term investment decisions can benefit from this analysis. On the other hand, traders can use technical analysis to determine entry and exit points based on past price movements, which makes it useful for short-term trading.

To calculate a currency’s value, fundamental analysis takes into account a number of economic factors, including news, political developments, and economic indicators. Technical analysis, on the other hand, ignores outside factors and bases its understanding of trends on price, volume data, and patterns.

Key Economic Indicators to Watch in trading the financial markets:

1. Inflation rates
2. Gross Domestic product (GDP)
3. Employment data
4. Central bank decisions
5. Natural Disasters and Seasonal Factors: Impact on Market Volatility

Unpredictable events, like natural disasters or geopolitical conflicts, that could affect the forex market are beyond the scope of even the most comprehensive fundamental analysis. Currency rates may fluctuate abruptly and dramatically as a result of these occurrences, making it difficult for traders to effectively manage risk. Trade safe and smart with us at XGLOBAL as we offer currencies, metals and CFDs using the latest Meta Trader 5 platform.