American Politics and Forex in 2012

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					The Republican bid for the US Presidency is no doubt going to have a serious impact on
the US economy and on the US Dollar on Forex charts. There are a lot of people who are
certain that a Republican taking control in the White House could mean a tighter belt in
the Federal Reserve. If the Federal Reserve outlook becomes hawkish we can rest assured
that there will be a lot of trouble for those currencies paired with the US dollar on Forex
charts. There is going to be an awful lot of hustle and bustle in the US economy, and at
first this might result in some reverberations within the equities markets. There is a lot
that can be gained from this knowledge by the savvy trader, not the least of which is the
fact that the USD will likely rise.

The Republicans will likely institute a number of different austerity measures as time
goes on, and this will serve to satisfy many of the Conservatives within the Republican
camp. Unfortunately by not satisfying the more Liberal mindsets the United States could
see similar uprisings to those in Greece and Portugal, if this occurs then there is a chance
that the US economy could actually suffer. The Republican party taking over will
represent a much more staunch attitude towards fiscal responsibility and progress. This
could make for some interesting days as time goes on since there will only be more and
more tumult on both sides of the aisle. While there are certainly a lot of budget issues to
be addressed in the United States they must not be addressed in black and white terms.

The road to fiscal prosperity in the United States will be a long one given their huge
deficit, and the US dollar will likely follow whatever course is set on Forex charts. This is
something that needs to be kept in mind when analyzing this currency against others
when trading. Otherwise the consequences could be quite severe and numerous as time
goes on, making for some very interesting times at the trade station. Watch for news
coming out of the Federal Reserve and from Congress regarding upcoming policy
changes. No one is quite sure of which direction things will go in, but one thing is clear,
and that is that both sides have had enough and are prepared to take drastic action to
move the economy forward.

				
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