This week the main event in the headlines is the very unexpected result for the Brexit.
Here’s a quick recap of the carnage from the UK’s vote last Friday to exit the European Union:
The GBP/USD immediately crumbled after the result dropping by a staggering 8.1%, while on Monday it dropped another 3% trading as low as 1.3150 which is a 30-year low.
Financial markets worldwide nosedived after the result as well.
Germany’s DAX 30 fell by 8.8% on Friday, the Japanese NIKKEI tumbled a massive 7.5% while the FTSE plummeted by 5.1%.
U.S. stock markets also felt the aftershocks of the Brexit vote with the Dow Jones falling by 3.5% ending trading with its sharpest fall in the last ten months while the S&P 500 fell by 3.8%.
So what else should we be aware of?
Citizens of England are coming to terms with the fact that their vote to leave the EU has placed the nation’s economy in disarray and the long term affects may be felt for years to come.
The result pushed Prime Minister David Cameron to announce his resignation although he will stay in power until the Conservative party meeting this October giving the country some time to negotiate a plan for exiting Europe
While early on Monday, Chancellor Osborne stated that there are 3 major challenges for the UK ahead – market volatility, political uncertainty and the negotiations for new trade and economic links with Europe.
So what’s next for the UK?
The disagreements exposed from the referendum are not working in favour of the already-complex structure of Great Britain
Scotland’s First Minister already took the opportunity to reiterate their decision to remain in the EU and said that there is now a high likelihood of a new Scottish referendum on independence from the UK.
There are also rumors that the Irish might also seek to re-unite the island’s two parts but this remains to be seen.
It’s safe to say that we are just seeing the beginning of what the Brexit vote has in store for traders so be prepared for even more volatility this week. And as always rest assured that our trading conditions will never change no matter how volatile the markets are.