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Investing in international markets was once limited to investment bankers and those on wall street, but with the invention of the internet, this has since become an investment for individuals as well as businesses. But with a number of variables affecting the stability of the market as well as the limited margin for error, it can seem daunting to begin investing due to the increased risk. However, the use of investment platforms, increased news coverage and deep learning algorithms have made the process of trading significantly easier despite the ongoing political uncertainty.
Brexit And The Value Of The Pound
When it comes to political uncertainty the first thing that springs to mind for many is the ongoing debate between the Eu and the UK. With a number of general elections since the all-important referendum result and a fluctuation in the price of the pound, this has caused many to be hesitant when investing. With the price of the pound falling 1.31% due to EU leaders not being convinced by Boris Johnsons withdrawal agreement it did not look promising for the UK heading into the December 12th general election.
However, this changed with the result of the referendum as the conservatives won a majority to claim a majority of 78. This is promising for the UK during this time of political uncertainty as to the Commons vote on a bill to secure an agreement date of the 31st of January 2020. This vote will take place on January 9th and will likely secure the official leaving date of the 31st of January for the final Brexit date. This is likely to pass in the house of commons as the Tory government now hold a majority with enough support to pass the bill. This is therefore set to affect the Forex market and future investments as the price of the pound has the potential to fluctuate significantly.
Upcoming Elections
In addition to the ongoing uncertainty in the UK, there are also a number of the worlds leading superpowers holding elections this year. With the U.S set for a presidential election in November of this year, as well as a number of other countries also heading to the polls, this can have a knock-on effect to the price of international currencies. Though this can make trading difficult on the Forex market, there are a number of trading platforms and Forex brokers that can offer guidance when looking to trade. But how do you know which is likely to benefit you the most? By conducting research online and sitting to compare forex brokers you can then begin to navigate the market with the best possible chance at success despite the ongoing political turmoil.
Ongoing Uncertainty With The U.S And Iran
With the recent airstrike on Qassem Soleimani from the American government came a huge disruption to the global stocks as they plummeted shortly after the news. However, with this came a six-year high for the price of gold and the price of oil surging by as much as 5%. This comes as a direct response to the imminent conflict between these two countries that will most certainly leave a lasting impact, particularly on economic growth.
With this ongoing uncertainty between the two countries, the U.S has begun to increase financial and economic sanctions on Iran until they begin to change their behaviour. This has since raised tensions, however, the Iranian government has warned of “severe revenge” for the death of their leader on January 3rd following a drone stick led by the U.S at Baghdad airport.
Trumps Impeachment And The Global Economy
The final political turmoil that is affecting the forex market is the impeachment of President Donald Trump. As the impeachment of the U.S president continues despite the ongoing issues with Iran, it is house speaker Nancy Pelosi that is coming under fire from the worlds media as she is pressured by fellow democrats to send articles of impeachment to the senate. However, with the ongoing spat between the democrats and the republicans, this is causing many to question whether or not the impeachment will ever go ahead.
This along with the ongoing problems with Iran are causing many to be hesitant when it comes to investing in the U.S as the price of the dollar fell following the beginning of the official impeachment process. Though this has since recovered, this is fluctuating further with ongoing political turmoil with the U.S, Korea and Iran as well as within its own country leading up to the 2020 presidential election.
With mounting political uncertainty around the U.S as well as ongoing concerns surrounding the mounting oil prices, there is a vast amount of fluctuation in the Forex market that can be difficult for the inexperienced trader to navigate.
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