Is politics playing an important role in Forex Market? Yes, it is. Economy policy of a country is controlled by politicians. If the political stability of a country is out of control, then if will affect the country economy and thus its currency.The pound has tumbled to a 10-month low as fears grow the UK will have a hung parliament in the forthcoming election.The currency fell 1.7% to drop below the $1.50 level against the dollar for the first time since May. It has lost 7% against the dollar this year.
Then what, it create a negative sentiment and affect the participants psychology. When you look at the GBP/USD chart, you will notice big boys had been dumped the pound since early of 2010. They know when the time is right, political news can become their agenda to suck the novice traders money. Once news is broken, people start to sell, they start to take profit. Basically this is the games plan that had been set up.
Before cable (GBP) become victim, EURO get the hit. Big Boys rule out the EU possibly break up due to unwillingly German bailout Greece. Participants panic once news break out, and big boys seeing the account become bigger...again, same pattern occur.
My questions to you, which political issues will be raised up by big boys before they dump the news through media? If you know, Forex is a gold mine to make money.
