Learn This Proven Top 6 Money-Making Forex Trading Strategy: How to easily become a master forex trader with this true Overbought & Oversold trading strategy by Patrick Greenlace

Author:Patrick Greenlace
Language: eng
Format: epub
Published: 2017-07-12T17:00:00+00:00

Module 12.

Geopolitical Events, Financial Crisis and Natural Disasters.

Geopolitical events mostly surrounds a countries presidency and national politics. Any serious issues related to the president and/or its cabinet, has major effects in currency movements. At the time of this writing, in the USA, they`ve just had a presidential election.

On the 9th November 2016, we saw the EUR/USD (which reacted similar to other major pairs and other markets) push higher in an instant as the market were shocked about Pres. Donald Trump`s election victory.

Immediately after the EUR/USD ran up, as the markets were absorbing what the victory could mean for the US economy, we saw the pair push lower for the entire month running into December. The reason for that was because the market interpreted Pres. Trump as being pro-business because he had promised to cut corporate taxes and to invest into the infrastructure, and hence the market were simply pricing in this promises and the expectations that the Federal Reserve Bank would hike their interest rate in the ensuing month of December which it did.

Also, another major geopolitical event we saw is the BREXIT vote which would continue to have an impact on the GBP until Britain concludes its negotiations with Europe in 2019. Other political events are the 2017 elections in Germany, France and Netherlands in the European Union, and which would impact the Euro and all the European financial markets as these are the European major economies.

Financial Crisis has to do with governments debts and general financial problems facing major countries, this events don`t occur often. Greece is one of the countries which experienced financial crisis in recent years. Also, things like your earthquakes and tropical cyclones or hurricanes has the ability to affect the financial markets, depending on which country they may have occurred.

For example, a hurricane may hit the Mexican harbor and stop the shipment of oil, this would ultimately reduce the oil supply and cause the oil prices to sky rocket, which would in turn see the Canadian dollar strengthen (See Intermarket correlations) because Canada is one of the major suppliers of oil, and so, demand for oil out of Canada would hit new highs.

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