subject: Obama's Gospel and CFD Analysis [print this page] Obama's Gospel and CFD Analysis Obama's Gospel and CFD Analysis
Economic events dictate the twists and turns of the world's forex markets. A CFD can be used to shift a real time judgment into the trading world. By understanding and reacting to emerging events, your market judgment is both enhanced and enlightened.
An event need not be at its end point in fact the transitionary nature of events particularly political events provide the openings necessary for market sentiment to react. Obama's latest 2012 budgetary proposal is a perfect example of political events with a wider context. Although the nature of a proposal means that it has not yet been realized, a CFD analysis of President Obama's suggestions may assist in developing a wider trading strategy.
The proposal is centered on aspirational aims to cut the US deficit, an incision which involves finding or saving trillions of dollars through increased taxation and spending cuts. The backdrop of these changes is one of republican ferocity, as they continue to dominate the House of Representatives. For any changes to become a realistic factor within the financial world, signs of co-operation are required from both Democratic and Republican sides. Nevertheless, the budgetary proposal offers valuable transparency into the political machinations of a President with global reach, sowing the seeds for future change. A successful interpretation of these seeds at this stage could reap greater rewards at a later date.
From a financial perspective details of financial reform outlined in the budget, acts as a useful indicator of the US sentiment towards financial regulation. Any changes to the US financial system may impact its global competitive presence and the world's financial organisations will react accordingly. The President has proposed an increase in funding for US market regulators invoking a path of reform. It is unlikely that this idea will easily slip through the Republican gaze, as they strongly oppose changes in the Dodd-Frank reform law.
The relationship between the financial world and this economic event is highlighted when considering market reaction before and after the immediate release of Obama's proposal. The Dow Jones fell by 5.07 points after the news release.
IG Markets South Africa has additional information on CFD analysis. Please ensure you are aware of the risk involved before investing. The above information does not constitute as financial advice.
