By James McKee – Continued economic strife throughout the world has driven many people to resent the current economic system and speak out against events such as the G20. Slow economic growth fuels the hatred of many ordinary citizens towards financial officials of western nations. Political tensions can often cause drastic changes within the forex currency exchange so traders should definitely take note of these developments. Among the main issues being tabled at the G20 summit this year will be the pressure of the US and other western nations on China to spend some of its capital reserves.
Among the very top of the reasons that common citizens are upset include the Federal Reserve Bank’s latest move to spend six hundred billion dollars on US treasury bonds. Such as a move is seen as brash and uncalled for and nearly every financial advisor of merit agrees that this move will spur inflation and weaken the US dollar exponentially. What this also means is that a weakened US dollar will begin to flood emerging markets throughout the world. This will have repercussions that are indeed far reaching due to the fact that many western nations are heavily invested in developing economies.
What this then spells out is consequences abound for western countries and their currencies. All major currencies in the Forex currency exchange may become unstable and while a trader thrives on change the type referred to here is not good for anyone. Pure chaos is not predictable and reduces even the most experienced Forex trader’s efforts to a mere throwing of the dice down the board. No trader wants to gamble (those who do seek their kicks in the market don’t “kick” long), the ideal situation in the Forex market is a kind of “controlled chaos”. The best traders know and embrace this to the full extent and I am sure that they like the rest of the world will await the result of the Fed’s latest decision with baited breath.
About the Author
Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.
