Political issues are not separate from economy Sometimes it happens when some country could not exit from some problems just by economic methods. They need political intervention. This is even more so in periods of great depressions and recessions, when the economy demands some extraordinary methods, financial resources and even law changes. For example, as with the Marshall plan after WW II. But nowadays we see that the economy has really big problems to recover, we already see political crisis when Republicans were not able to agree with Democrats on the US debt ceiling. So real changes in law, instability or separation inside the government, orunexpected changes in the ruling administration could have strong influence on overall markets, including domestic currency value. P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them on the next page and Sive should answer soon. Note: FPA ranks are earned in the battles against scam, not in the classroom.