Currency Trading and Political Conditions

forex trading can be really lucrative, but the trader must also consider the political conditions of the country. History dictates that the regional, international, and internal political conditions have a profound effect on the market. That is the reason why news anchors used certain sentences to indicate the trend like; the market responded positively with the Feds (US Federal Reserve) decision, the dollar and euro were hit by news of a possible attack on another oil rich country, or the dollar is weakening as the Chinese are considering changing their reserve currencies. Thus, the trader must turn on his television and keep updated with the latest trends in international politics which might affect currency exchanges.
When reading the daily newspapers, the trader must read both the front pages and the business sections, including the many commentaries on the possible effects of political upheavals on currencies. Internal political instability seen in countries like the Philippines and Thailand has severely damaged the Baht and the Philippine Peso, and there is always a market reaction every time there is a major political rally or bombing in unstable districts or provinces. The same is true is places where sectarian violence is at their all time high like Pakistan, India, Honduras and several African nations. Time and time again, history is reminding foreign exchange traders to study the political climates in different countries and regions all around the world. Currency trading is not excused by these factors, and players must not also be good in Math but he should be better in History and Current Events.