This week hasn’t brought too much exciting news in terms of the Forex market, but it does indeed bring news about some of the largest changes the industry may change in the future. Therefore let’s dive into this week’s best developments in the financial markets and see what could come out of them further down the line.
Major Political News
Theresa May – Rejected!
You probably have already heard that the British Prime Minister, Theresa May saw her Brexit plan utterly rejected by the British parliament. The vote was almost 2:1. Indicating that the May’s plans were not supported not only by the majority of the British population but also the government as well.
This has already sparked talks about completely canceling Brexit, however unlikely it may be. Regardless of it, the British Pound has been bouncing around the market, not being able to stabilize. Although bringing profit scalpers and day traders, it is not looking good for long-term investors. Over the future, Brexit will most likely still happen, and nobody yet knows how the small island will exit the EU.
Major Market News
South Africa to Regulate Cryptos
Much like the whole world, South Africa is home to a lot of crypto investors. In a recently published announcement, the SARB (South African Reserve Bank) expressed their willingness to start regulating cryptocurrencies within the border. It may come as a surprise but some of the best South African Forex brokers have been thriving on crypto CFDs, therefore it is quite hard to tell what this change may bring to cryptos in the Nation.
Bloomberg Connects China Bond Market
Bloomberg, who is much better known for their financial news outlet has just launched a connection service alongside the China Foreign Exchange System. With the service, foreign investors will be able to access all Chinese bonds situated on offshore locations. This is not only predicted to easy the trade war between the US and China but also help many investors to cash in for huge amounts.
German Investors Lack Knowledge says BaFin
The brokerage pricing dilemma has long been discussed by German investors alongside brokers themselves. Therefore the German Federal Financial Supervisory Authority (BaFin), has issued a statement. Saying that the brokers are never legally obligated to maintain a set price on a particular asset. This baffled BaFin and surfaced a more serious issue, they were hoping to avoid. The lack of knowledge from the investors’ part.
Important Currency Pair Updates
GBP/USD back on the track
Because of the above mentioned Brexit deal rejection, the GBP is looking as strong as ever. Many investors began to believe firmly in the cancellation of Brexit and are stocking up on the currency. Because of this, we are finally able to see a major GBP/USD breakout. It may not be too late to take a piece of the cake as well, as the currency pair has not yet regained its stable exchange rate.