Whilst technical analysts read charts to identify trends from past market data,
fundamental analysts study financial statements, economic reports and news events which may reflect a security’s health or may influence its price.
Keeping informed of relevant international news and financial news can help traders to profit from short-term market trends. For example, a change in government, natural disasters, and releases of economic reports can all have an effect on the value of a currency. Traders may also benefit from being up-to-date on the overall state of the economy, and from monitoring any changes to interest rates as well as news regarding production, earnings, employment, GDP and management – depending on the asset being traded.