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November 2016

Italian Referendum could cause considerable currency volatility

Published: Tuesday 29 November 2016


 
As the spotlight shifts from the UK leaving the EU to happenings in the Eurozone, all eyes turn to Italy to see how this will affect the EU, the Euro, and other global markets. The vote – a yes or no decision - is over the greatest constitutional change in Italy since the end of the monarchy in 1946.
 
David Johnson, Director at Halo Financial, comments, “US investors and global market commentators are talking about the potential for massive short positions in the Italian equities markets – we are likely to see considerable volatility over the coming weekend as the Italian constitutional referendum plays out.”
 
“A Yes vote would affect the powers of all areas of the legislature and, while some say it would rest too much power in the government, others say the new laws are poorly written and a Yes vote will kick off decades of legal challenge.”
 
“One possible outcome would be for Italy to move to exit the Euro and maybe even the EU. Hence the nervousness in Europe as we approach the weekend’s vote – and the significant potential to affect the strength of the Euro.
 
“This means a period of uncertainty and therefore potential volatility in the currency markets. For any individuals or businesses planning currency transfers now and in the coming weeks, risk management is key; automated orders are the tools that can help protect your money in the face of continued market uncertainty. Plan your currency transfers carefully to protect any significant UK-EU transactions in the days ahead.”


About Halo Financial

Halo Financial is a leading UK foreign exchange brokerage, offering a comprehensive range of services to individuals and businesses since its inception in 2005. The business prides itself on offering a flexible and personalised approach for each of its clients, simplifying the seemingly complex foreign exchange market to maximise savings in currency transactions and make money go further.

Halo Financial specialises in managing currency risk by offering hedging and risk management strategies for both individual and corporate clients, with vertical expertise in numerous industry sectors such as international trade, financial, education, migration and overseas property.  Staffed by qualified technical analysts, the company is authorised by the Financial Conduct Authority and HM Revenue and Customs.

Halo Financial received the OPP Gold award for Best Supporting Service, the Gold Award forFinancial Support and Innovation from Re:Locate Magazine and has 5 out 5 star customer gold merchant status via independent review website, Feefo.com.

Article by Rachael Kinsella