Political  insight into latest Economic developments

As Currency Markets Ignore the Fundamental & Technical basis on the USD exchange rate against the Euro & Major Global currencies, and which this as of all know that must bring the USD down at the period of time and this from point of Technical view & sustained by clear and well know Economic basis.

When markets Ignore above factors to value currencies against the USD, or more exactly when markets ignore Economy to price currencies, we must look at the other side to study well the direction of USD against Euro & other Global currencies.

In fact, we must look at the political side, which currency at the moments price its value via it.

Money & Politics, or Economy & Politics background

When Global Markets are affected by politics, especially on the currency side, we return to the Traditional conflict between the 2 Mega powers which fight each other over the control of the globe.

The conflict between France & UK,

France alliance with Italy which use Russia as military arm and which include Germany and now Enlarged to have the EC, this Mega Power is proffered to be called the Art of Franco-Roman Mega Power which has also Syria & Iran at their side in the Middle East

The 2 Mega Power is UK which is the Brain of USA and which use USA as its military arm and is proffered to be called the Anglo-American Technology Mega Power and which has Israel at their side in the Middle East.

The political basis behind the EURO rise against the USD

Israel & Iran, in 2 words, the latest development of Iran nuclear activity has lead to an situation in which Iran became very big Risk over Israel, and UK at same time was silent since it await suh us news to Have Iran back from the control of Russia and Franco-Roman Side via USA.

France create a global chaos to direct attn to another places to let Iran focus on Nuclear activity in  a comfort way like Lebanon war and at same time France claime that she is talking with Iran using Franco-Mask or the real face of French strategy which is opposite of its Global direction, for example when she declare that France want Iran without Nuclear power, you surprise later to find this program ready, when Mr. Sarkozy Tell Market that Euro is Most overvalued currency in Globe, we found later Euro at record high.

The conflict of interest on Iran has lead to a test by France and the alliance by Italy Via Russia to Korea to test Anglo-American side if they want to make a strike over Iran and to show that Iran is ready to make a response.

This is responce when USA tested Russia in Georgia last year to test Russia and Iran reaction over USA Strike on Iran,

This tests lead to instability in the financial markets, so far called Geopolitical Risks with the motivation in first place to help the bear markets in commodities.

This lead to Dollar recent fall instead of gain.

Economic insight into latest political developments

In fact, the clear solutions is that global financial markets must ignore Korean nuclear news, since this news cant be developed to the war or attack stage from North Korea over its neighbors.

USA Ignorance to this news was clear all the time the USA FED confirm that markets are free to set the Currency exchange rates.

France, Russia & Italy with Germany, want to pump up commodities prices up, this lead to un-realistic value of Global currencies against USD.

in the following example there is a combined interest:

Russia want price of Oil sustained above 70$ & Italy want the Gold to double to 2000$ since they hold a large gold reserves which can be only sustained by Geopolitical risk that does not exist, and there is no reason from point of Fundamental view over North Korea Military regional balance to make this tests.

Again France & Italy with Russia & Germany want all of them to remain in the commodities cycle which is over with oil drop from 150 to 35, and what happen now is just political motivation or political powers usage to motivate the bear market rally of commodities especially the oil.

An important  reason to Euro rise against the USD is The China Debt to USA, China has sent a clear signal to USA that there will be some problems on financing Iran war.

At same time the news to Korean Nuclear test which is a test for USA reaction over Iran nuclear program developments which must speed up an expected strike over Iran Nuclear Site, the point remain the reaction of Iran which can lead to a regional war and financing it which make pressure on the USD.

Same Story, Same Traders, Back to 2006 October when first Korean Nuclear test happened,   we will find a the technical indicator for Short term EURO/USD performance:

We observe the rise of Euro Against the Greenback after the Korean nuclear news  back in 2006 of about 7% from 1.25 to around 1.3370, this will be point 1.

An similar trading could be expected here. noted at point 2.

Form point of Technical of view, we are trading the Euro short term with the target of 1.50, the past performance of Dow Jones 30 During October 2006 indicate that the Euro rally could be sustained by Dow rally to 10.000 levels.

After 11 September attacks Wall Street Does not like to show that USA Capital markets and Global financial markets as a whole can be influenced negatively by Russia Nuclear Jokes via Korea which is similar in value to Global terrorism.

Stock Markets will react positively, boosted by General Motors Bankruptcy.

 Euro rise could be sustained by Oil rise above 75$.

Another development of Euro/USD after the 1.50 rise may be an mini retreat to 1.46 then a rise to above 1.55, This possible development is under focus.