Negative impact can also come from of weather related events, like hurricanes that can damage oil platforms, factories, stores, etc. Another example of how geo-political events can affect Forex markets are parliamentary and presidential elections. Change of political party in some country can lead to that that in the next few months currency should be pretty steady, in Forex terms, while traders do not gain insight into new leading party's or president's attitude on questions relative to the financial. With all this being said, it is important for traders to always have some kind of Stop Loss level as geo-political events can occur suddenly and cause great price movement within a minutes, leaving trader with huge losses if reaction was not momentary.
In the final Chapter on Fundamental analysis we will say something about affect of commodity prices on Forex markets.
