Brexit Vote’s Impact On The Forex And Financial Markets

Dear Traders,

British voters will head for the voting booth on Thursday, 23 June 2016 to decide if the UK should continue with the European Union (EU) or (Br)exit.

But what does that mean for your trading?

After all, the decision will have significant long term impact and consequences for:

1. the UK
2. the rest of Europe; and
3. even the world – as our webinar on the matter will explain.

What’s really at stake with Brexit?

Let’s not beat around the bush:

…the decision to leave the EU will impact commerce, finance, politics, migration, security and even agriculture.

For British, other factors could play an important role too, such as:

1. yearning or preference for British independence; and
2. annoyance over the increasing bureaucracy of Brussels.

Ultimately, these are all important points – but the main question we’ll address here, is geopolitics.

Do British voters ultimately envision Great Britain playing a role within the EU or do they prefer to promote their national interests outside of the EU framework?

Only the Brits can make that decision:

…but in the meantime, we can discuss the pros and cons of both choices for the financial markets.

And in case we miss anything in this discussion, please feel free to ask us questions directly via twitter using this hashtag - #AMBrexitFAQ

Reasons to stay

The importance and relevance of staying or leaving will obviously differ, depending on your political view.

Some arguments will be mistrusted, others highly emphasised or thrown aside.

Our role is not to endorse or reject any of the arguments – just provide an overview.

Brief arguments in favour of staying include:

1. better economic performance is expected when in the EU, with real GDP significantly lower in 2030 in both pessimistic and optimistic scenarios
2. employment stability, with 3 million jobs associated to EU trade
3. large trading volume and size with EU
4. relative stability and peace in the EU territory over recent decades
5. more influence on EU policy and direction – otherwise, the ability to shape European policy is greatly diminished
6. protection of London as the main financial center in the EU
7. danger of domino effect, where more EU countries follow the Brexit example and the EU unravels.

Reasons to leave

Brief arguments in favour of the UK leaving include: