Renzi′s Italy Referendum


Matteo Renzi: An Italian politician born in 1975 who has been a Prime Minister of Italy since the 22nd of February 2014 and also a Secretary of the Democratic Party since the 15th of December 2013.

The UK Referendum (Brexit) shook the markets in June 2016. On the 8th of November Donald Trump stunned the markets when he won the presidency. In case you missed Brexit, it was about the British people voting themselves out of the European Union (EU). Read more about it HERE.  During Brexit most ignorant retail traders lost so much money and some traders haven’t recovered from that blow (my team and I were safe from the storm because we are used to following the economic events). On the 8th of November when the US held their presidency votes, I learned that the markets tend to react more to the polls than the actual outcome. I have also learned from the Brexit and US elections that Gold is a must watch. Where there are  uncertainties, investors prefer Gold as they see it as their safe haven. If you were ignorant during Brexit and the US Elections, don’t be caught up in the storm again.

Italy Referendum, what is it all about?

The Italian citizens will hit the polls to vote in a referendum of whether to maintain their national constitution. The polls are showing that more people are for a “NO” vote ( they are opposing the constitution change), I don’t trust the polls though, they could be wrong. Most citizens are opposing the proposed constitution changes. Renzi is for a “YES” vote and he said he will resign if the “NO” vote wins. His resignation will lead to a political crisis which may call for Italexit (Italy exiting the EU just like the British people did ). It is all happening on the 4th of December 2016 (mark this date). Watch out for the Euro pairs as Italy uses Euro as their currency. Economic events like these come as a surprise to many traders. But I am always aware due to the method of trading that I use. Read more about how I trade HERE. Thank you so much  for stopping by and reading this post, I hope I am adding value to your trading.



How is the Forex Market impacted by the Bank holidays  

A very short post about forex trading on bank holidays and  the effects it has  on the markets. The Forex Market consists of big banks, hedge funds and retail traders. The big banks are the major players in the markets. A large portion of Forex comes from the banks, when the banks are closed it also mean less activity which may lead to low liquidity on the currencies that are involved. If Canada, America or any other bank is closed, traders should try to avoid the currencies that are involved due to the minimal activity and the fact that there won’t be large volumes of trade coming from those particular banks that are closed.  As a result, a currency may become extremely volatile and that can be too risky. Forex trading on bank holidays can be very tricky. During a bank holiday the markets tend to react abnormally, It can either be too volatile or very sleepy.

We are approaching December holidays and the market will not be as liquid as it was during the year. Year after year I have witnessed this during December holidays, the market just slows down. This is due to the fact that most traders are taking holidays and there are less participants in the markets. Less participants also mean less liquidity. Even though the Forex market is opened 24 hours 5 days a week, there are worst and best days to trade Forex.  The market remains open during December holidays and only closes on Christmas day and New Year’s day.  It is important to know when to trade and when to stay away. There are so many distractions during December holidays, don’t let it be the time to loose all your money. I choose to stay away from currencies that are involved in a bank holiday. This week on the 22nd the Japanese banks will be closed in observance of their Labor Thanksgiving holiday (I will avoid the Yen/JPY)  and the US will observe theirs on the 24th (I will avoid the Greenback/USD) . Thank you for stopping by, I hope you found this post informative. If you, kindly share with your peers.



Economic news to watch this week. Please note that the United States has moved their clock backwards to save daylight (I am having difficulties understanding this concept), therefore we (South Africa) are currently 7 hours ahead instead of the usual 6 hours and the events that are usually released at  2:30pm S.A time are now at 3:30pm S.A time till further notice.




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