Independence Day Toast to Market Segmentation

The federal holiday, Independence Day epitomizes the US desire to stand alone. The question remains just how separate is the United States from global change and to what extent is the US a pioneer or a follower. Financial products such as digital or binary options can be used to trade market volatility associated with change, they differ from more traditional options trading products because they can be traded within a limited risk environment. Global change and volatility can therefore be traded within a limited risk arena.

A lot has certainly changed since the 1776 Declaration of Independence, but history has a way of rooting itself within modern society. Both technical and fundamental analysis techniques continue to look to the past for insight. Independence Day is inevitably a momentous day within the US psyche but are US politicians resolute in embracing a US desire for independence or are they more concerned with global integration?

Increasing ubiquity between countries and the wide spread flow of both informational and financial transactions certainly works to break down traditional transatlantic barriers. Not only do far more seemingly passive individuals receive information on international politics, but they also choose to engage in the broader debate. Packaging countries into individual boxed categories is becoming increasingly challenging.

The emergence of European contagion has once again brought the integration debate to the forefront of mainstream media and market speculation. This independent mentality has become increasingly alluring. The seemingly underperforming dollar has progressed beyond its ill fated value to become a tempting shelter for investors wishing to shun Euro Zone disdain and Greek default concern.

Despite the differences between the Euro zone and US market space, the US/Euro financial drip is not easy to sever.

Bound by an innate global connection to the world's money markets, the US could experience a domino effect as some financial intermediaries are inevitably dependent on European money markets to fund US investment. The Federal Reserve has been quick to offer an alternative, with Federal Reserve official John Lipsky re-enforcing the concept of 'readily available' US funding on offer.

IMF Economist, Gian Ferretti has warned that beyond money markets intrinsic connections with European banks could also prove risky to US financial circles, stating that financial transmission channels could prove to be more difficult if they 'spill over to banks within the European core because European banks often experience significant dollar activity.'

Equally while it's easy to refer to European countries as a homogenous group, each country is exposed to their own macro economic variables.

There have clearly been changes since 1776 with communication and public opinion becoming progressively 'global'. Global finance is defiantly nodding to mechanisms of the past, reminding the world of the importance of retaining your identity even when all around you may be 'integrating'. A poignant concept within a world, of increasing financial contagion.

Financial writer with an interesting in digital options and binary trading.