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Fundamental analysis and How to Use it in Forex Trading

The success of a Forex trader depends on many aspects. Among them is the ability to comprehensively see the situation in the financial market. Fundamental analysis is one of the main types of market’s analysis. It represents a deep study of the political and financial situation in some important countries.

The financial situation of every country forms the rates of the national currency. Traders who trade according to the fundamental analysis must always be aware of political situation of the world major countries. A trader is getting familiar with the economical or political situation in the certain countries. After that he or she concludes whether there is a potential for a national currency to go up or down. Basing on this conclusion, a trader makes a trading decision for buy or sell. This is how the fundamental analysis works.
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