British voters on Thursday, 23 June 2016 voted to leave the European Union but what does that mean for your trading? The decision to leave the EU has impacted commerce, finance, politics, migration, security and even agriculture. In the run up to the election, many traders took to trading less volatile currencies especially the Japanese Yen and the Swiss Franc. However, as the decision loomed, many decided to bet their trades either way should it not favour Brexit and many did reap substantial amounts of profit. It must be said though that the British Pound has suffered a great deal in the aftermath of the decision and one can only hope for inflation to keep low enough compared to our European counterparts, for the Central Bank to regulate the interest rates accordingly so as to attract foreign investors and for the housing market to continue holding in order to sustain the value of the pound. In the currency market, at any one point, some currencies will be more volatile that the others, so it's advisable to keep up to date with the current economic shifts in the market so as to decide what trades to place and when. As time goes by and the Brexit negotiations are agreed and executed, the British government will hope to benefit in being able to control the national borders, break away from the European Union bureaucracy, regenerate the British fisheries, generate more savings for British consumers, getting hold over the much loved British values and most importantly being free from the European Union direct membership payment in excess of £17.4 billion. With these achieved, hopefully the pound will regain value and stability and be once again be the top favourite trading currency.
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AuthorMy name is Catherine and I am new to forex trading. Archives
August 2017
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