Influence of Current Political Events on the Forex Market

Not necessarily to read the following lines

Motion Graphics currency pairs in the Forex market is determined by a number of macro -economic parameters , policies and possibilities , and also the events current political events of rumors and expectations of future official statistics on the state of the economy.

Understanding and appreciation of all these factors is fundamental analysis , which is used by analysts and traders in the Forex market to estimate and predict the movement of a currency pair . current political events

In this article we will talk about one of the components of fundamental analysis - the influence of political developments in the forex market.

It is necessary to note that almost all the major political events is always linked to the economy and current political events its influence can influence positive and negative effects on the state of a particular national currency .

The ability to estimate the influence of the current political situation and forecast of its development, is largely the main current political events operator. If interpreted correctly the political situation , skillfully uses fundamental factors , and is not influenced by general current political events speculation and rumors about various events , the forecasts are accurate.

It is much easier to predict the market reaction to political developments that were expected (elections of leaders of states , election of parliament, the acceptance of budgets , major interstates and other contracts ) current political events and the unexpected (terrorism , wars, etc. . )

An experienced analyst will plan clearly understood that the reaction to a political event . For example , the upcoming elections influential State President always come to an end with the election current political events of a candidate for the position. And here it all depends on the position of the head of the new government policy and the economy , the factors that influence market movement . But in general , during the pre-election campaign , current political events the presidential candidates representing their political agendas. Therefore, everyone can become familiar with the views of all the candidates . In this case, the reaction is fairly predictable market .

current political events It is much more difficult to determine the movement of the forex market reacts to new unforeseen policy . In such situations , no time for preparation and analysis of a situation. Everything happens quickly , and quite unexpected. In this case, the market suddenly starts to calm a storm , current political events accompanied by a collapse or an unexpected increase in a particular currency , which was not foreseen by the fundamentals. And due to a storm in the market can be caused , for example, by a revolution current political events in one of the oil producing countries . Market reaction is extremely fast. current political events

There are no strict requirements for operators on how to act in these cases. However, the following events difficulty constant regions , analysis of the situation, must minimize the consequences of such policies spontaneous surprises . As can be seen , political events play an important role in the foreign exchange market, and rapid response , based on careful analysis , not only can reduce a degree of risk, but also make a profit.