Politics and trading. Two seemingly different concepts which should not correlate. But alas! Last year made it abundantly clear – these two are now connected forever. Unfortunately for us.
So, where and how are we feeling this connection?
1. Trade war.
Oh, yes, the biggest economic scandal of the year. All we were waiting for the whole year is for the situation to resolve itself, but it seems that we are going to have to wait for a couple more months to see some kind of resolution to the question.
Trump refused to have the talk and we didn’t exactly understand why. Just like the greenback didn’t understand it as well. The currency was extremely jumpy, ultimately finishing the year on a low note. And that is not to mention Chinese economy. We were not pleased to see yuan as weak, as both dollar and yuan have a lot of influence in the international markets.
Even though Trump was the one to start the trade war American economy took no less hits than the Chinese one. We didn’t see this coming, to be honest. What happened - happened and right now we need to look in the future and look closely at the possible talks between the two biggest world economies.
2. Trump.
As long as we are talking about America, why not talk about Trump himself? This American president is probably the most controversial and hated around the world as all of his predecessors put together. But we are not here to talk about his international image. We are here to talk about his actions that brought us here.
He picked a fight with Mexicans and Canadians. He wants to make friends with international tyrants like Putin and Un. He is lying. He never thinks about his words. He is only thinking about himself. That is clearly not the president that Americans want to have, despite the fact that he has quite a support.
His international policies simply need to improve in the remaining years of his presidency or the world is going to be a mess when he finally leaves office.
3. Brexit.
Going to Europe. Here Brexit is shaking all of the cards for euro and pound alike. We were not prepared to see talk as hard as they were. We needed to see Brexit reversed – that is what we needed. But no. No such luck was presented to us. We still are going to need to see the process come to an end this year.
And what have we got so far? Weak pound, failing euro? And these were just talks and negotiations of the exit. Nothing that can’t be undone. Experts along with traders all over the world fear what can happen next as we are not at all prepared for this. And the only example that we have of the process like that is the Soviet Union. And we all know that didn’t exactly end well for either of the members.
Of course, it is not going to happen to EU. Not on such scale, at least. But political climate in Britain is much to be desired with the conditions for Brexit being far from satisfactory. Essentially, Britain is going to keep on making all of the same payments without being able to enjoy the perks of the EU country.
These 3 occasions spoiled all of the trading in 2018 for us.