Trading with Political Uncertainty

The Effects of Political Uncertainty

The wall of worry helps markets climb higher, but uncertainty generally causes volatility, which may create adverse market conditions.  When there is political uncertainty where a country or commonwealth can default on debts to investors, chaos may follow.  While investors always crave a pure Goldilocks environment, they are often met with times when political uncertainty will strike.

In 2015, there have been a number of political issues that have generated market volatility.  On Tuesday July 14, Iran and the U.S. announced a nuclear arms agreement that helped push down the price of oil over the past 2-weeks.  The outcome was in question the entire way, but traders had priced in an agreement and short covering ensured as investors sold the rumor and bought the fact.

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easyMarkets

With over a decade of trading expertise and 100,000 fulfilled clients in 160 countries worldwide, easyMarkets will tick all your boxes whether you are a new or experienced trader, affiliate or introducing broker. Trade currencies, commodities, metals, vanilla options and indices from one place without the jargon, complicated offers and confusing terms! Welcome to the exciting world of trading. Welcome to easyMarkets.

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