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Simon Smith

Look beyond the index

As always, the FTSE 100 acts an illusory indicator of the UK economy. The fact is that it has recovered all of the losses seen in the wake of Brexit. Happy days I hear you say. The fact also remains that it’s, to a fair degree, a measure of how companies are doing that dig lots of stuff out of the ground and sell it in dollars. Oil companies make up 3 of the top six constituents and they have been flying because of the currency moves, up around 10% since the vote. So the FTSE move is to a fair ...

Simon Smith

Stability with Scars

Relative stability has returned to markets, but the scar left by last week’s Brexit vote still runs deep, most notably on sterling, but also on stock markets and also to a degree the single currency itself. The lasting impact is also seen on interest rate expectations, with interest rate markets now suggesting the next UK move will be for lower rates in the UK, with a small risk of this also being priced into the US markets. In the UK, the standoff between the UK and Europe remains deep, as was ...

Simon Smith

Some stability for now

All the jokes about the UK exiting Europe twice in one week have been made, so we’ll move on swiftly from that. Markets have seen some reversal from the sharp sell-off of recent days, cable having managed to crawl its way up to near the 1.33 level. Hardly anything to shout about given the extent of recent moves. Equities are also opening slightly to the upside, but this follows on what has been a brutal two sessions, especially in bank stocks, where we’ve seen losses not seen since the depths ...

FxProUpdates

FxPro Trading Conditions Return to Normal

Dear Clients, As a result of the outcome of the referendum we expect volatility to continue over the next weeks however not at the levels we have seen last Thursday and Friday. Trading Conditions will revert to normal levels (pre-Brexit) across all instruments and asset classes as of today, Monday 27th of June 2016 at 10:00 am GMT+3. We will continue monitoring the situation and if needed we will adjust conditions in order to better reflect the market conditions. Please note that despite the ...

Simon Smith

Shaping the Post-Brexit World

Those that were hoping the Brexit referendum would allow us to move on must be sorely disappointed. The world and the UK in particular starts the week facing more uncertainty than a week ago. The Prime Minister has announced his resignation, the leader of the opposition’s position is looking ever more precarious and the leaders of the Brexit campaign hardly appear to be celebrating. The fact remains that no-one knows how this process will progress, when it will happen and in what form. The ...

Simon Smith

Welcome to Brexit

There are many, many implications of the events overnight; for markets, for politics and for the wider global geo-political scene. Some will become apparent in the coming days, others will take years. For markets, sterling has already passed judgement, trading a 17 big figure range overnight as we’ve moved from believing the last polls showing a small lead for ‘remain’ to the eventual results. The immediate concern is with FX intervention, not from the UK but from Japan or Switzerland who have ...

FxProUpdates

[Update] Changes to Trading Conditions on Indices, RUB pairs & Shares

We would like to inform you that to safeguard our clients against increased market volatility, the following trading conditions on Spot/Futures Indices, EU/US and other Shares, as well as all RUB pairs have been changed with immediate effect on FxPro MetaTrader 4/5 and cTrader platforms: - “Close Only” has now been enabled on Spot/Futures Indices, EU/US and other Shares and all RUB pairs until further notice; - Once “Close Only” is disabled, margin requirements on Spot/Futures Indices will be ...

Simon Smith

Brexit and beyond

With results still coming through, it's looking more likely that the UK will leave the EU, but it ain't over until it's over. We've seen near unprecedented volatility, not only on sterling, but also in many other asset classes besides. If this does prove to be the case, then the next stage will be worrying about possible FX intervention, less so from the UK, but more so from the Bank of Japan and/or the SNB. There will be a balance to be had. In essence, the UK government will downplay the ...

FxProUpdates

Live ‘Brexit’ Results

Referendum of the United Kingdom's membership of the European Union Please follow live results on FxPro Website Live 'Brexit' Results