Fundamental Analysis

Fundamental analysis is a term that covers all geo-political and macro economical aspects.

Even if technical analysis works very well, you cannot rely on it exclusively. It is without a doubt difficult to imagine trading without taking into account the situations around you. Events such as elections in the UK, the eruption of a volcano in Iceland, and the increase in interest rates in Canada, will all have a significant impact on the economy of these countries and consequently on their currencies.

You can usually find an economic calendar on your platform that will allow you to keep track of the various announcements of the day. It is important to check the economic calendar regularly to avoid taking a position just before a big announcement that will shake the market.