What drives currency markets? If you ask economists, Forex traders or other related experts, they will definitely answer that tactically these are economic indicators, including GDP, industrial production, balance sheets, import and export, inflow and outflow of capital, interest rates, fiscal policies etc.
Strategically, the exchange rate of a certain currency depends on the country’s power as well as its position and prospects in the international arena.
Numerous European statistical offices report that oligarchs flee their motherlands in crisis as numerous states around the globe started introducing taxes for the super rich (like France and the USA). The super rich emigrate in the UK. At the same time, the middle class emigrate to Spain and Germany.
In particular, Francois Hollande, President of France, offered to introduce a 75% tax of the rich. This provoked mass emigration of French millionaires and billionaires. They emigrated to Belgium and Great Britain and Russia.
Strange as it may seem, but over 4 500 Frenchmen, 4200 Germans and 1900 Finns have received Russian passports since 2009.
At the same time Russian oligarchs move to London, New York, Miami and other big cities by simply purchasing luxurious residential property there – penthouses, villas, mansions.
As for Russia, the Russian economy is closely connected with European one. The EU accounts for the lion’s share of Russia’s external trade volume, mainly at the expense of the export of natural gas.
Forex Experts on Migration Trends
According to Eugene Antipenko, a major instructor of , says that no (or very few) Forex traders and analysts take this factor into account. The reason is simple: most Forex traders are scalpers and intraday traders. Only some of them are mid or long-term traders. Still, they do not care about the long-term prospects (1-2 decades). However, the very connection between emigration and currency markets deserve attention.
