How ‘Brexit’ Would Affect the Forex Market

There has been growing speculation that Britain may be considering an exit from the European Union. Also known simply as a “Brexit”, there is a considerable amount of speculation in regards to the ramifications that such a move would cause. Although much focus has been placed upon political and economic changes, we also need to keep in mind that a Brexit may significantly affect the world of Forex trading.

Potentially Massive Hedging

Much like during uncertain economic times, we would likely see a good deal of hedging against both the euro and the pound. Some analysts feel that the pound itself may (temporarily) drop in value; leading to a selling off when any Brexit rumours become more substantiated. However, there are others who believe that the actual value will change little. It is still likely that many Forex traders will adopt a watch-and-wait approach as opposed to taking a more proactive stance.

Knee-Jerk Currency Fluctuations

If the Brexit does indeed come to pass, the chances are high that major currencies around the world will see dramatic changes in their value within short periods of time. The yen and the dollar would naturally be included within this category. This could very well prove to be beneficial for Forex day traders who are looking to capitalise on such volatility. From this perspective, the entire volume of the Forex markets is predicted to substantially increase.

A Confidence Issue?

Most currency investors are understandably concerned about how the long-term value of the pound will fare. Some economists feel that a lack of confidence in regards to a British economy with less ties to Europe could cause the pound to fall. Although it may experience a significant depreciation before, during and immediately after the Brexit, it is not likely that any permanent damage will be done. As the pound would no longer be as innately tied to the economic conditions of the European Union, it is not unreasonable to surmise that it could experience a return to strengths not seen since before the global economic crisis. Once again, this could prove to be quite attractive to active Forex traders of all levels.

Regulatory Issues

It is also important to look at potential regulatory changes throughout the Forex markets. Currently, many platforms based out of the United Kingdom can be accessed by European traders. It is still unclear if a Brexit would permanently change this unique relationship. This could have profound impacts upon firms which are currently located in Britain. Transparency and data protection laws may change while some companies might not be able to cater to the needs of specific geographic locations. Still, this is likely to be a worst-case scenario more than anything else.

Opinions are still divided as to whether or not the concept of a Brexit will become a reality. It should become more clear as 2016 progresses and Forex traders should always utilise the latest software and platforms provided only by CMC Markets.

7 Tips on How to Get Business Financing

Getting business financing is the first big challenge of any company. But in this day and age there are more ways than ever before to get business financing. If you are looking for some conventional and unconventional ways to secure financing, this guide will help you through the process.

  1. Traditional or Online Bank Loans

Traditional bank loans are always a good way to start. These provide you with the backing of a reputable organization that’s still going to be there in five years. For newer businesses, they may even have mentoring programs you can take advantage of. Unfortunately, loan decisions …

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Smart Ways to Spend Your Tax Refund

As the tax filing deadline approaches and returns are almost finished being processed, for those that are getting a refund this year you may start to already be adding items to your online shopping cart in anticipating for when you see funds show up in your account.  Before you go and see the money disappear in the matter of a few clicks and grow tired of the most likely unnecessary items that you purchase, there are plenty you could have done with the money instead.  Sure going on a vacation could be a great escape after the winter weather, feeling …

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How Would Brexit Impact Expat Property Homeowners?

The British are able to own property in European Union member nations. Also, many international investors are able to earn property in Great Britain. How would Brexit impact expat property homeowners? With a significant amount of uncertainty around the future of the UK housing market with regards to the country possible exiting the EU, here are some of the key things to consider.

Easy to Move Around in EU

According to the Telegraph,approximately 1.3 million Brits” live in Europe with about 319,000 in Spain and 171,000 in France. The French Consulate states that “there are 400,000 French …

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Become a More Efficient Spender

There is no better time than now to become more financially responsible with your spending this year.  After you went on a spending spree in 2015 and do not have much to show for it in your bank account, was it worth it in the end?  Maybe you had a lot of fun.  While I am not saying to stop spending for those memories, maybe there were extra expenses that did not need to be there; there had to be.  Start from scratch and look to improve your spending right away.

Impulse spending is some of the most dangerous type …

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Get Your Spouse Involved in Saving Money

Your household finances are a team effort and should not solely fall on you.  Some cringe at the thought of money discussions.  Some may not be as good at juggling paycheck pay cycles with paying all the expenses at the right time before the due date, while still factoring in allotted amounts for extra expenses such as food and gas.  If paying bills is not yours or your spouse’s thing (hopefully one of the two of you can handle money), make sure they are at least involved the monthly expenses.  You both should know online logins, account balances, and what …

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Achieving Financial and Personal Well-Being

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Have you ever wondered why companies invest so much money into background checks on potential new hires? Does it seem weird that most want to pull your credit report as a means for determining gainful employment? Well, if you consider that on average, there is a $2,000 per employee cost that a business incurs annually as a result of their employees’ financial stress, then it shouldn’t be a surprise that employers know it’s important to do their due diligence in ensuring financially stable workers.

For background, there are many ways that an employee’s poor financial situation can result in losses …

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Think Credit Unions are Nice? Do Not Overdraft Your Account

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If you are like me and ditched the large financial institutions because of high monthly fees and went to a credit union, but although they are often considered a nicer version of the big bank that you left in the dust, a new study shows that if you get caught up in overdrafts, there is no difference in what each charges.  According to a study by a 2015 study by Moebs Services, which reviewed almost 2,800 banks and credit unions, the median price for an overdraft on a checking account is $30, while credit unions the median charge is …

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Knowing How to Stack Up Your Auto Insurance Quotes

How do you compare car insurance quotes properly? Here are a few handy tips:

  1. Ask for recommendations and suggestions. Start with the people with whom you trust. Whether you end up getting tips, a name or a company – getting that conversation rolling is a good start. In addition, your network could extend the same questions to the people in their own circles. Who knows? Long shots can pay off.
  1. Compare rates online. It’s hard to know if you’re getting a good deal unless you take a peak around, especially online. Comparison sites like CoverHound offer auto insurance quote comparison
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How to Cut Your Monthly Budget to Save Money

Cutting your monthly budget is a fantastic way to avoid taking out a loan, while practicing good financial habits for the future. In this article, we are going to show you how you can cut your monthly budget and save money.

What Do You Spend and What Do You Have?

You cannot figure out how to cut your monthly budget until you know what you have coming in and what you have going out. Create a list of your regular monthly expenses and your income. This will tell you what you have left over.

Now you have a starting point …

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