Forex Fundamental Analysis

Last week the fears of many were realised when the UK voted to leave the EU. Major markets fell and the Pound tanked, as any rational person would have expected.

The surprise vote in favor of an exit from the European Union has sent markets around the world into a state of turmoil and the pound has dropped to a low not seen in over 30 years.

43 years of being able to blame “Brussels” for virtually every perceived wrong in UK life is coming to an end. The UK has voted to leave the European Union, the world’s largest and most successful trading bloc, and stand alone.

Whilst approximately 46.5 million registered UK voters determine if the nation will remain in the EU or take a step into the dark and leave, other weighty decisions are being made on the continent.

The ripple effects of global jitters around Brexit has reached around the world and as far as New Zealand.

As the UK prepares to vote on Thursday in an historic referendum which could have repercussions far from its own shores, a final “Great Debate” on the subject was televised last night.

The Securities and Exchange Commission has just approved an application by a startup called IEX (Investors Exchange) to become a full-fledged stock exchange.

The Bank of England is independent of government control and has a remit to deliver low inflation, ensure price stability and support government economic objectives for growth and employment in order to support sustainable economic growth.

Last week saw all the major markets losing ground again mainly on worries over the fallout from a potential “Brexit”. Get the fundamental analysis for the week of June 20, 2016 here.

On Thursday 23rd June, the United Kingdom holds a referendum on the question of whether it should leave the European Union. Strange but true: the vote is not legally binding, and would simply advise the British Parliament to begin negotiating an exit with the E.U. which would probably take some years.

The countdown for the Brexit referendum began weeks ago but with only 5 days left until millions of Brits go to the polls, the effects of a possible UK break from the European Union have already taken hold, especially in financial markets.

When we think of Chinese manufacturing, we imagine thousands of low-skilled workers putting in long hours for minimum pay on the factory floor.

The main reason why the Federal Reserve (and other central banks) wants to raise interest rates is to provide them with a tool to stimulate the economy when the next recessionary cycle starts.

Domestic consumption is the dominant term in the US economy, accounting for 70% of US output and consumer sales is an important element within the sector.

One thing that economist have warned about is that uncertainty over a potential Brexit will inhibit investment in the UK and that stock markets will fall.