Economic shocks and aftershocks have always happened periodically across all markets and these spill over into FX markets. And that’s a good thing. We love volatility! When something shocking like Brexit, or the Pandemic happens, the economic effects result in fluctuating currency rates.
When times are “good” Forex thrives. When times are “bad” Forex flourishes and is therefore an essential, ringfenced component of any portfolio. Below we can see some trades which benefited from Brexit, on the way up, and a sneaky little trade to hedge against the impact of a leave vote…