The Crimean Referendum Stir in Financial Markets

As for the results of the Crimean referendum there are new problems, especially in Russia and in Europe. This problem will enter a new phase for the United States and Russia. The financial markets will have spillover effects from the results of the referendum. U.S. stock decline on Friday’s close was the most seen in seven weeks. Investors believe that antagonism between Russia and the West as well as Ukraine will spread to the financial markets. Russian investors are especially worried that once the U.S. and European economic sanctions against Russia are in action, then the loss will be self-evident. With the current referendum in Crimea, there will be a new evolution of problems for the Ukraine. And the game of tug of war will go on.

Western Economic Sanction Programs:

1.Freezing of assets
2.Suspended lines of credit
3.Confiscation of property
4.Abolition trade negotiations
5.Visa restrictions on Russian elite, or the threat of expulsion from the Russian Group of Eight (G8).

Investor Outlook

Executive director Janlyn Capital of Andre Bakhos noted “In view of the impact of global geopolitics, new highs will be more difficult and I do not know the market release of these signals. The results would be very bleak, and one needs consider these problems and exercise caution when making macro trading decisions.”
London brokers and wealth managers, chief economist Jeremy Batstone-Carr said the geopolitical nightmares tend to transition into the market, so that investors may overreact in the face of such potential risks. Even so, once the crisis has erupted in Ukraine, and investors are busy at this time in the absence of income under the revised objectives of the European stock market.

Analysts Speculation

Analysts speculate the Euro could again impact 1.4000, but is expected to remain range bound; sterling short term will remain weak; the dollar / yen may weaken expected between 100.00-103.00; AUD / USD 0.9000 These are key points of concern, if the probability is held up.

Comments

Post a Comment

Popular posts from this blog

Forex Trading Requires Some Caution

Forex trading, like all potentially profitable investments, can be risky. Here's how to arm yourself with the knowledge you need to keep from getting burned. Whether it is in the millions or thousands, trading in the Forex is a bit risky. There are a lot of players involved and if you don’t arm yourself properly with knowledge about the Forex you may just get swamped. The Forex is the largest, most vibrant market in the whole wide world. The financial world has never had a market that involves so much transaction. Over a trillion dollars worth of different currencies exchange hands everyday. Some lose in the trade, while some hit the jackpot and make tons of money. The Forex is characterized by its unpredictability and the liquidity because it deals with foreign currencies and each one's value influenced by their own country. That's why anyone who is greatly considering joining the Forex trade should think twice, thrice and maybe even ten times before doing so. This
Read more

Free Forex Guide Part 4

Getting Started   When it comes to getting started in forex trading, there are quite a few things that you have to consider first. The first thing that you need to do is to find and choose the right broker to help you in making your trades. When you are choosing a Broker you need to know that there are many Forex brokers to choose from, just as in any other market. Here are some things that you need to look for in making your choice: Low Spreads The spread, which is calculated in pips, is the difference between the price at which a currency can be bought and the price at which it can be sold at any specific point in time. Forex brokers don't charge a commission, so this difference is how they are going to make money. When you are comparing brokers, you will find that the difference in spreads in Forex is as large as the difference in commissions in the stock arena. What this means is that lower spreads will save you money and therefore, look for a broker that offers low
Read more

Free Forex Guide Part 6

Technical Analysis Just like their counterparts in the equity markets, technical analysts of the Forex trading market analyze price trends. The only real difference between technical analysis in Forex and technical analysis in equities is the time frame that is involved in that Forex markets are open 24 hours a day. Because of this, some forms of technical analysis that factor in time have to be modified so that they can work with the 24 hour Forex market. Some of the most common forms of technical analysis used in Forex are: • The Elliott Waves • Fibonacci studies • Parabolic SAR • Pivot points A lot of technical analysts have a tendency to combine technical studies to make more accurate predictions on your behalf. (The most common method for them is combining the Fibonacci studies with Elliott Waves.) Others prefer to create trading systems in an effort to repeatedly locate similar buying and selling conditions. Choosing Your Strategy Most successful traders will develop a
Read more