The forex market is a global market that trades in currencies. It is the largest financial market in the world, with over $5 trillion traded every day. The forex markets are open 24 hours a day, 7 days a week and 365 days of the year. This means that there is always something happening on these markets and they can be unpredictable at times. While some people may think that this makes them an easy target to trade, it actually makes it more difficult than other financial markets because there are so many variables involved.

There are four major factors affecting the Forex Markets: political events, economic news, business news and technical analysis (also known as charting). These four major factors will all influence how you should trade for profit or for protection against loss when trading Forex currency pairs such as EUR/USD or USD/JPY .

Political events, such as an election or a war, can affect the value of a currency. If there is political unrest in one country, that country's currency will typically weaken against other currencies. This makes it more difficult to trade because you have to be aware of what is happening in the market and adjust your trading accordingly.
Economic news reports are also important when trading Forex Currency Pairs because they can affect the value of a currency by changing interest rates or inflation levels. For example, if interest rates rise sharply in one country, that nation's currency may strengthen against other currencies due to this higher rate of return on investment for those with foreign investments (see chart below). Similarly, if inflation rises significantly in one country then its currency may weaken against other currencies due to increased price increases for goods and services around the world (see chart below). These changes usually take place slowly over time so traders need to be patient and wait for them before making any trades based on these economic news reports. Business News Reports are also very important when trading Forex Currency Pairs because they can influence how investors view their investments and therefore how they invest money into companies around the world. For example: if a company announces that it has been awarded a contract from another company then this could cause investors to buy shares in that company which would increase demand for its stock price causing it to rise (see chart below). Conversely; if something negative happens at a particular company like layoffs or poor performance then this could cause investors not only not want their money invested with this particular firm but also sell off all their shares causing its share pe to fall (see chart below). The news reports that are released by the media can be very important when trading Forex Currency Pairs because they can cause investors to buy or sell their investments based on how they view these economic events. For example: if a company announces that it is being sold for $50 per share then this may cause investors to buy its stock price causing it to rise, or if a company announces that it is being acquired by another firm at $70 per share then this could cause investors not only not want their money invested with this particular firm but also sell off all their shares causing its sharpe to fall. These changes usually take place slowly over time so traders need to be patient and wait for them before making any trades based on these economic news reports.

Technical analysis is the study of price patterns in order to forecast future movements. Technical analysts use a variety of techniques, such as candlestick charts and moving averages, to determine whether prices are trending up or down. They also look for clues that can reveal whether an asset’s price has reached its peak or bottom. Forex traders who follow technical analysis believe it can help them make better trading decisions by predicting trends before they happen. However, many forex investors have criticized technical analysis because they claim it doesn’t work very well during periods of high volatility and news-driven moves in the market.