We will talk in this article about modern politics conditions and their impact on currency trading. Summary talk is that we will talk in fundamental analysis and its impact on currency trading. In fact, what happened in Greece, Cyprus and Italy. Has had a significant impact on the euro single currency, was an echo of events in these countries strong Ntara to adopt the euro currency, where the EUR / USD from more couples actively traded on the level of forex trading market.
Forex Trading and politics
We will talk now about what happened in Greece and its impact on currency trading. Greece was living above their capacities, before joining the euro. After the adoption of the single currency, increased public spending. For example, I noticed wages in the public sector increased by 50% between 1999 and 2007, and that was faster than other countries in the euro zone much, and accumulated a large debt with the holding of the Olympic Games in Athens in 2004. While increased cash flows spread tax evasion. Thus, after years happened in the Greek budget deficit: the difference between income and expenditure, and became out of control. Moreover, there was a large part of the hidden loans, so that the Greek government can enter into the euro zone. But when I got the global financial crisis, the loans appeared hidden visible, the country was not ready to deal with the issue appropriately. Have reached debt levels to the point the state is not able to repay them, that is the point of no return, and began to demand aid from its European partners and the International Monetary Fund in the form of huge loans. So I got the problem of Greece, had a significant impact on the euro currency, which was reflected on all couples intersecting with the euro.
But now we will talk about what happened in Cyprus and its impact on currency trading. The crisis that took place in Cyprus was the biggest crisis get in the country's history. In the years 2012-2013, got the economic crisis that rocked the Cypriot Republic, after the Cypriot banks affected by the debt crisis that took place in Greece, the Cypriot Back Economic Classification by international rating agencies. On March 25, 2013, it was announced rescue plan for Cyprus obtaining about 10 billion euros by the European Union and the People's Bank of Cyprus (also known as Bank of Iki) and Bank of Cyprus (Commercial Bank the largest on the island), dropping all deposits uninsured there , it is clear that the owners of capital significantly Russians dominate in those accounts as a tax haven banks security. The carrying value of deposits insurance has about 100 thousand euros will not be affected. Thus, we note that the Cyprus problem had a significant echo on the currency trading market, and the summary that the Cyprus problem is a problem of what happened in Greece.
We conclude our conversation now about what happened in Italy and its impact on currency trading. It was the Italian government spending on public services is less than what was earned in taxes, and the government remained on like this every year since 1992, except in a period of economic recession in 2009. If the reason behind the economic problem which occurred Italy? In fact, that Italy originally enjoyed a very weak economy. And suffers from poor organization, and an aging population, low investment, and the accumulation of debt, all of which together limit the state's ability to increase production. Gotta country's average annual economic growth rate fiasco is 0.75% in the past 15 years. This is much lower than the interest paid on the debt. And therefore the impact on the euro currency too big. Which led to the weakening of the euro.
Thus, we can see very clearly the impact of any country in the euro on the euro group as a whole, and we can also see the impact of what each state gets the rest of the states in the Union. And the extent of their impact on the currency of that country. And you As an observer of the news you hear an echo cry of a country through its currency.
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