State of the market: uncertainty increases
After the Brexit vote in the UK collapsed, causing a rise in British pound volatility, political risks worsened sharply in Europe. Thus, the failure of this vote indicates the possibility of the UK leaving the EU without a deal or even the cancellation of Brexit. In addition to the uncertainty around Brexit, the opposition announced a vote of no confidence in the May government, which exacerbated political risks in the UK.
As a result of events in the UK there is a growth of pessimism, which puts pressure on stock indices. The US dollar index also did not stand aside and showed a noticeable increase in volatility at the end of trading on Tuesday. Thus, the US dollar index versus the basket of its main competitors in trading on Wednesday is trading near the resistance of 96.00, indicating the potential for growth and the uptrend preservation, limited to resistance levels: 96.00 and 96.20.
Read also: “Geopolitical risks as fundamental factors of the market”
Hanzenko Anton
Earn with the help of the trade service on the news Erste News!
Topical articles of the trader’s blog:
- Geopolitical risks for the beginning of 2019! (Part 3)
- Long-term investment in currency pairs! The GBP/USD pair!
- Geopolitical risks for the beginning of 2019! (Part 2)
Current Investment ideas: