Theresa May’s gamble went against her, with the UK going to the polls and stripping the Conservatives of their majority. The announcement of a hung parliament saw the pound drop more than 1 per cent against some of its major trading partners.
So, what happened?
Initial polls were pointing to a Conservative majority, which gave confidence and boosted Sterling. But as we closed in on polling day, there was a shift towards Labour. Some analysts said this shift might have been due to the negative campaign that Theresa May ran, while others speculated that it was the youth vote finally flexing its muscle.
Either way, the Conservatives had to scramble to form an alliance with Northern Ireland’s Democratic Unionist party to remain in power.
How does this affect Forex trading?
Our traders have been saying the same thing all week – The pound it too volatile, so stay away from it. There was hope that the election might finally see a trend form, but with the uncertainty of how the Tories and the DUP will operate together, it’s likely that the pound will remain volatile, and therefore a bit dangerous to trade on.
What’s the alternative?
The best part about Forex is you’re not tied to any one market – There are many other currencies, indices and commodities that you can watch. The important part is knowing what to look for.
Learn to Trade from the best
Here at Learn to Trade, we’ll show you what to look out for when it comes to Forex trading, whether it’s trends, announcements, or news reports. Once you know the strategies and risk management systems, our traders use day in and day out, you’ll be ready to copy them and make the most out of the markets.