A lot has happened within this week in terms of finance and politics alike. We were able to see some major changes in large countries such as the UK and the USA. Let’s now look more closely to what we can expect to be seeing in the first quarter of 2019.
Major Political News
The USA is Back
Last Friday Trump tweeted out that the government is back on and that he has reached an agreement with the Democrats. the agreement has not been disclosed yet but the president highlighted the fact that the wall will indeed be built. Regardless if the wall is built with crowdfunding or the national budget, it may be an unnecessary cost for the already slow-growing US economy.
Major Financial News
Banks Flee the UK
Brexit is nearing every single day and there is still no clarity as to what expect from the historic date. There is yet to be made a tangible agreement and Theresa May is not delivering. Ever since the fiasco that was the last refusal of the Brexit plan, local financial firms have been bracing for the worst.
Some banks are already drawing up plans to flee the country with large financial institutions like Goldman Sachs already looking for offices all around the EU.
Brokers in Russia Finish Operations
At the end of December 2018, the Russian Central Bank completely outlawed any further licensing of Forex brokers, even revoking the licenses of already existing ones such as Alpari.
However, the local Forex brokers run and founded by Russians get to stay and operate without any hindrance. Why you may ask? Well, as it turns out most of these companies are quite close to the government.
The CBR justified their actions by saying that the foreign brokerages violated the rules multiple times, a claim that is yet to be backed by facts. The Russian brokers, however, are wrapping up operations and counting the extra income they will have after completely dominating not only the Russian sphere but also the CIS market.
FX Volumes Down all Over the World
The daily Forex turnovers for October have been looking terrible for the whole world basically. The biggest hit was taken by the London based market as it suffered more than $100 million in decreases. There are similar cases in Japan, Singapore, and Australia but the shining lights are the US and South Africa. South Africa was exceptional as their Forex brokers managed to surprise everyone in the industry with their performance. Learn more about South African Forex brokers here.
Bulgarian Regulation is back
The Bulgarian FSC (Financial Services Commission) is now back to regulating new entities within the borders of the country. For several years it has been bombarded with requests, all of which were simply ignored. However, the regulator has now come out with specific qualifications that the applicants must have. One of which is the need for a local (Bulgarian) Director & staff.
Major Currency News
The United States dollar has recovered after the re-opening of the government, however, the improvement has not been significant enough to cover the damages that were done to the currency during shutdown days. The pair is currently sitting between 1.1430 and 1.1450 with good prognosis of an increase as both institutional and retail traders calm down a bit.
Pound Down, AGAIN
After the catastrophe that was the voting on the Brexit deal, the GBP has suffered a lot of damage. It was going relatively well with the USD pair even breaking through the barrier of 1.3200 but ever since the US government renewed their operations the GBP is failing to keep up. The initial support is now at 1.3065 and there are no good indicators. The Pound will most likely continue falling and the GBP/USD pair will reach 1.3020, something that it struggled to pass.