Markets, one week into Brexit (a historic event)!

Updated: Sep 13, 2019

It’s been a week since the historic Article 50 was triggered by the UK that formally initiated proceedings to entangle the United Kingdom from the European Union. Last few months have been eventful from a global economic and fundamental calendar point of view and there is no doubt things will continue to remain so going forward.

What follows next will be negotiations in between these nations on terms and conditions of trade, business dealings, permissions (visa), security, human resources and so on ... A break from a 40 years old relationship and set of new rules of engagement is expected to take two years to complete! And this divorce of the nations is to remain amicable going forward for businesses to thrive for related and larger good of economies as such.

Add to this other internal factors: Scottish referendum for instance and the upcoming French elections for instance. Not to forget the impact from international fundamentals. New US President and administrative changes, and the roaring Asian economy!

For traders, both institutional and retail, these fundamental events offer great opportunities. Above mentioned events were, no doubt, the most watched events in recent times, for short term gains as well as long term investment (portfolio re-balancing) perspective. Going forward too, as discussions on Brexit terms get underway, markets will see volatility and thus opportunities for gains.

Sterling and Euro are directly impacted currency pairs. So is the stock market and indices, FTSE, DAX, CAC40 for instance. Fortunately though, none of these were drastically impacted by 29th March 2017, Article 50 trigger.

British Pound, remained stable at the recently established narrow range as against the sudden drop seen during 23rd June 2016 referendum. The UK stock index FTSE remains at record highs with daily ups and downs. On the European stocks front, DAX and CAC40 both are currently trading at all time highs! (what Brexit??) The European shared currency Euro, though has dropped significantly in recent times. The boost received in the initial months of 2017 taking the currency vs the USD (EURUSD) above recent lows, appear to be fading. Impact of Brexit, impending French election, central bank ECB monitory policy majors lacking ... whatever the reason!

For now, it appears though that 'Taking a Stance and Sticking to It' norm has been the winner. We will continue to follow the markets closely and bring our insights to readers. We remain committed to offer unbiased latest views so as to make informed and focused trade and investment decisions.