The uncertainty created by Brexit hasn’t spared the forex trading market or forex traders based in or trading through platforms based in Great Britain. 

With Brexit complete and its impact on forex evolving over time, many traders have questions about the implications of this political and economic move not only on the rules and regulations of forex trading but also the trading opportunities created by this shift.

Look no further for answers to your most pressing questions. Here’s an overview of the impact Brexit has had—and will continue to have—on forex trading.

One of the most fundamental indicators of both financial market activity and exchange rate changes is the Gross Domestic Product (GDP) report. At its core, the GDP’s first release and its revisions influence the currency of the nation for which it is released. If the data comes out higher than expected, this is typically considered to be positive news, and the currency will often see a boost in relation to other currencies. On the other hand, when the GDP data is lower than the market expects, it’s typically considered negative news, and the currency will usually drop in value as a result.

GDP is such a commonly used term, with the GDP report being routinely cited. The following builds on the above introduction to further explain what how the GDP report impacts the forex market.

If you’re a forex trader, you face more reports, indicators, and surveyed data than you probably know what to do with. While there is plenty of data that traders should keep an eye on, the consumer confidence index represents especially important. To help you further understand the consumer confidence index, the following explains what it is and what it entails.

You’ll hear the term “trading the news” routinely mentioned within the world of forex, but what does it actually mean? Plus, why are more people than ever before adopting a forex news trading strategy? Well, ignoring the obvious answer of “to make money”, forex news trading strategies have gained traction because of how close they bring traders to what is actually taking place within the market. Open 24 hours a day, five days a week, economic data runs rampant throughout each forex trading day, proving to be the catalyst for both short-term and long-term movements. At last count, at least seven pieces of important data are being released daily, which means that those who opt for a forex news trading strategy have plenty to get stuck into.

Economic calendars lay out the dates and potential impacts of scheduled national and international events that are likely to affect the price and popularity of given markets or assets. Because certain types of events have been known to impact trade in significant, predictable ways, the nature and date of each event on an economic calendar can be used as a trading indicator to maximize profit potential.

Recurring news events tend to make the most compelling indicators because they have predictable effects on trading sentiment and volume. Examples include scheduled publication dates for widely regarded market statistics or surveys, and anticipated events such as federal decisions on interest rates, trade balances, and inflation.

How is that for a month!   As the coronavirus pandemic continues, many more hundreds of thousands of people are infected.  Only a month ago we were talking in terms of hundreds of thousands of people infected with COVID-19, which has now ballooned out to over three million and more than 225,000 dead.  Economies have been brought to a grinding halt as governments around the world have taken unprecedented steps to lockdown their cities etc to help prevent the spread of the coronavirus. 

Financial markets have been rattled and the price of oil has plummeted as demand as all but dried up.  The extreme volatility we have seen in markets has subsided a little but remains above average.  Most major central banks have taken emergency action to cut rates (some repeatedly) and increase stimulus measures.

All markets and currencies experience highs and lows from time to time. But there’s almost no modern precedent for the global economic impact of the coronavirus outbreak. As the pandemic sweeps through nations around the world and forces normal business operations to, more or less, grind to a halt, countries are experiencing their own local economic slowdowns, with the larger global economy headed for a deep recession.

The main issue in December was the British election and its possible impact on Brexit plans.  British Prime Minister Boris Johnson returned to Downing Street with a big majority after the Conservatives easily accounted for Labour in its traditional heartlands.  Mr Johnson said it would give him a mandate to "get Brexit done" and take the United Kingdom out of the European Union next month. Earlier in the month, the U.S. Federal Reserve’s (Fed) Federal Open Market Committee had its two-day policy meeting, keeping interest rates steady, as widely expected.  Unlike many previous meetings, the decision to keep rates unchanged was unanimous. After three straight interest rate cuts this this year, the Fed kept the funds rate in a target range of 1.5%-1.75%. More importantly, the Fed indicated that no action is likely next year while there is persistently low inflation.

Themes to watch in 2019: Mixed Bag in Asia, What Next for the Fed? Deal or No Deal? Critical Times for Britain

The Dow Jones Industrial Average moves to an all-time high, the Federal Reserve hikes rates again, and the US dollar finishes the month stronger on the back of the Federal Reserve's outlook for another rate hike in December, three more next year, and one increase in 2020.  Central banks and trade talk continued to dominate the markets and there remain many loose ends as United States and China continue their ‘tit for tat’ antics in trade talks, and more recently with Canada and the North American Free Trade Agreement (NAFTA).