It is very important to analyze the market correctly before starting trade in it. If you are going for forex or futures trading or stock you must understand market flow and have ability to do analysis of market. After choosing right kind of broker like specialized futures brokers for futures market and forex brokers for forex market, the next step is to learn about flow of market at personal level.

There are two main ways for analysis of forex market first one is technical and second is fundamental analysis. Fundamental analysis is done on the basis of economic indicators, markets of assets and political scenario of some particular country, to evaluate their currency rates as compared to others in the world. The primary concern of fundamental analysis is to judge social, economic and political giants which effect supply and demand ratio. The basic things to look for may include growth rates, inflation, unemployment rates etc.

There are some basic factors of fundamental analysis that effect market in a big way. These can be economic indicators which are official reports generated by governments of countries in order to evaluate their economic development. Sometimes, these are released on weekly basis, more often they come on monthly basis. These are based on two major factors, which are international trade and interest rate and 2nd one is consumer price index. There is major influence of interest rates given by any country. They affect its currency’s strength as compared to other countries. The balance of trade gives the net difference between export and import of country, which is also key factor in any country’s economy.