Impact on the Great British PoundThe British pound dropped to an 8-year low and the entire European economy was in a complete shock. Because the UK and the EU capital markets are interconnected, one thing led to another and everything started collapsing. It wasn’t looking good. However, in the financial market, what usually happens is that everything that goes down tends to come back up, and vice versa. That being said, this is exactly where CFDs trading gets in the picture.
It’s not a secret that the Brexit led to a global market panic. People started trading stocks like there’s no tomorrow, not really sure what to expect. The main sector that got one of the biggest hits was the European banking sector and their aftershocks were severely felt; banks such as Barclays and RBS lost between 18%-21% of their market value, while British Airways decided to issue an immediate profit warning.
Stocks, Indices and Market Release InfluenceThe FTSE 250 Index fell by 7.2%, while Ford dropped by 6.5%. This is only a small fraction of what the Brexit aftermath caused. So, if you are an experienced CFDs trader, you most probably took some notes and followed the market. But if you’re not, you might be asking yourself: What’s in it for me? Well, there is actually a lot more than you can imagine.
The tremendous potential from trading on the financial market following the Brexit vote is quite outstanding. Even nowadays, almost 2 months after the decision has passed, there are still numerous important market releases that are being influenced by it. The smartest and most convenient thing to do is to follow the trend of the currency pair or stock and trade according to it. However, in order to do that, you will first need to familiarize yourself with the best CFDs trading strategy that suits this principle.