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Thursday, December 01, 2005

What makes the Market Tick?

"Markets up sharply amid??", "Gold heading south due to??", "Exchange rates soars, more highs predicted??", For many of us phrases like these are important indicators for making a major trading decision. It is no wonder that following these markets has become a part of our life. So we read the, wall street journal, listen to CNBC, or click to the inter-net for the latest market in-formations from the experts. This is where we require fundamental analysis.Reports such as Gross Domestic Product (GDP), Employment levels, Retail sales, Capacity utilizations and others shows a country's economical health. While economical numbers can certainly reflect in the market, some reports and numbers become important to market psychology and may have an immediate impact on short-term market moves. "What to watch" can change over time. In recent years (for example) Interest rates, Employment data, Trade balance figures and Inflation numbers have all had their time in the spotlight. However, even most "experts" admit they have a difficult time "beating" the markets. That is where technical analysis plays an importance. If you have an idea about where the markets are headed but still have doubts then you can cross check with the help of technical analysis, where the ease of buying and selling decision turn to forex markets investment opportunities

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