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The president elections in US impacted financial markets since the beginning of the election process. Dollar, gold and stocks volatility rose above the normal. Mexican pesos saw 2% growth. Gold dropped that much. And one week till the elections things got dramatic. Dollar index fall 1. 42%, S&P 500 saw 1.94% drop, in contrary gold started to rise and became 2.38% more expensive. Economists try to explain and predict market move. Let’s first look into general information.
Elections impact financial markets in every country. A research made from 466 election period in 79 countries between 1980-2006 shows that investors become less sensitive to the price during elections. This lack of interest can be up to 40%. It depends on democracy, corruption level and level of government involvement in business. In us investors become 20% less sensitive to the price during the elections.
This is because of the possibility of elections to change economic situation. New president can cause legislative or policy change that can cause prosperity in one sphere and decline in another, or may open new possibilities. Investors also can behave because of political loyalty or rivalry.
Political rhetoric al…
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adiray avatar
adiray 16 Dec.

great piece of work

Starsailor avatar
Starsailor 21 Dec.

good work

Dieselfx avatar
Dieselfx 27 Dec.


bibo avatar
bibo 3 Jan.

good luck

Josecarlos avatar
Josecarlos 20 Feb.

interessante, informação ótima

orto leave comments
In spite of periphery bond yields rising to record highs in the past couple of weeks, the Euro has managed to hold above the recent low of 1.2285. Why is this so? One would expect the Euro to have continued it's freefall with news of Spain's banking crisis and suggestions that Italy will be next.There are two reasons for this as I see it. One is Greece, and the other is....Greece.Firstly, Greece failing to elect a new government and talk of possibly leaving the Euro caused May's massive drop in the Euro as well as other risk sensitive currencies such as the Aussie and Kiwi, which were hardest hit. Until there is some clarity over Greece nothing will change much. Expect a great deal of political rhetoric and rumours to exaggerate intraday moves over the next 2 weeks until the mess starts to get cleaned up. Whether Greece stays or goes, the immediate future should be treated with great caution.The other reason for the weeks higher close in EURUSD is that many short positions will have been reduced, hedged or closed before this weekends' event risk. Only the bravest will hold over the weekend with a large possibility of a significant gap when markets reopen next week.Does news make pr…
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Likerty avatar
Likerty 20 June

So? Long or short!? :D:D

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