When businesses need to worry about politics

Economy & Politics | International | Reports | Sponsored

Businesses should beware that politicians have the power to shape their fortunes for good and for bad.

A new research project from forex experts Daily FX shows how the currency markets react after key world leaders say and do something headline-grabbing.

Whether businesses are engaged in imports and exports and have a direct interest in the rise and fall of their currency or just want to keep on top of the cost of doing their work, the price of the Pound is s key indicator.

The Daily FX project covers 59 events between April 2017 and April 2018, looking at news events for Donald Trump, Theresa May, Jean-Claude Juncker, Justin Trudeau, Shinzo Abe and Malcolm Turnbull.

Findings include:

● The Dollar was down against five major currencies after the President kick started a ‘trade war’ with sanctions on China.
● The Pound fell against five key currencies in the face of June 9’s uncertain UK General Election result.
● The Canadian Dollar rose despite high profile criticism of Justin Trudeau’s trip to India.
● The Japanese Yen increased in value after Shinzo Abe won a snap election to cement his position as Prime Minister.

It pays for businesses to be able to spot which big news stories will affect the markets – and how. Donald Trump’s escalating war of words with North Korean leader Kim Jong-un, for example, was often followed by an upturn for the Dollar. Theresa May’s deal to agree a ‘divorce bill’ after through-the-night-talks with the EU did little to move the forex markets.

We live in tumultuous political times – and we’re never far from another big news story – which means that businesses need to be on guard and brace themselves for a few economic twists and turns.

Brought to you by DailyFX

Did you enjoy reading this content?  To get more great content like this subscribe to our magazine

Reader's Comments

Comments related to the current article

Leave a comment

Your email address will not be published. Required fields are marked *