Articolo disponibile anche in: Italian

What is the best strategy to invest in the money market today? There isn’t an easy answer to this question, given that the matter is extremely complicated.

There are many reasons behind this complexity: the euro has been unstable for quite some time now, due to various issues, not least of all the fact that our country is currently in a situation of uncertainty. There are serious concerns in the markets, and this is reflected in the instability of the euro compared to other currencies, above all the dollar.

Brexit, and the UK’s departure from the EU is the other worrying issue. According to many financial analysts, in fact, the UK economy could be facing a significant decline in the case of a so-called ‘disorderly’ Brexit.

This was confirmed by a report by the Bank of England, in which the possible scenarios deriving from the forthcoming exit of the UK from the European Union were taken into consideration.

According to this report, the British GDP could in fact suffer a 7.75% drop by 2023, while the pound itself could face a 25% drop in value. These apocalyptic scenarios are causing concern in the markets, and among investors who are trading on the foreign exchange market.

The financial forecast for 2019 is not looking good for the dollar, that could considerably decline in value next year. This is due to the recent measures that are not helping the US economy.

The trade war and custom duties issues between China and the United States will heavily influence the dollar-euro exchange rate in the next months. Investors need also to take into consideration the global economic slowdown, and the tensions between Italy and Europe.

All these issues are matters of concern for those who invest, professionally or not, in the foreign exchange market. Forex can be an opportunity for independent traders, who always need to be aware of the risks and be informed about the current issues, such as the ones mentioned here.