LESSON 4 : GEOPOLITICAL FACTORS IN FUNDAMENTAL ANALYSIS.

 What is geopolitical factors in fundamental analysis..?

Geopolitical factors, this refers to the political, economic circumstances, relationship and events  which got an impact in countries, regions and at global affairs .

Some aspect of geopolitical factors are ..

1.Territorial disputes eg dispute in borders,land and maritime 

2.Alliance and partnership eg NATO 

3. Global power shift eg military strength and political influence 

4.Resources distribution, eg access to the natural resources like Minerals and oil brings out to conflict between countries in need to access of such resources.

5.Conflict and security matter's eg security threats and terrorism 

6.Trade with economic relationship.

Image from Tykr.

How do geopolitical factors affect the forex market..?

1.Currency valuation, geopolitical events such as polical instability leads to uncertainty in the finacial market , traders experience higher risks in currency's which are associated with the region having the conflict which lead to depreciate the currency value. 

2.Central bank response,  the central banks can extend the interest rate due to the need to stabilize there currency. This hence affect traders 

3. Commodity prices , due to the geopolitical factors, affect prices of product such as when a region of oil producing get geopolitical factors leads to currency with oil-correllation to spikes .such as USDCAD.

4.Economic impact, due to the geopolitical factors affect the economic situation of acounty hence much effect in the currency value 

5.Volatility in the market, due to the effects in the currency may bring out trends which helps traders to swing .

Image from Time , exprecing geopolitical factors eg political instability.

 Some tips towards updated with the geopolitical factors...?

1.Diversify your news resources, don't depend in single media but tend to research from different media source s

2.Use of news aggregators.such as google news 

3.Follow trusted news organizations such as BBC and Aljazera

4.Subscribe news laters 

5.Use of social media. Such as AUD KHABAR UPDATES

Don't miss lesson 5 on Market sentiment and news analysis in fundamental analysis Here