The month of March passed off uneventfully as the markets weathered the risks from a Fed rate hike that saw U.S. short-term interest rates being hiked by 25 basis points to 0.75% – 1.0%. On the political front as well, the general elections in the Eurozone kicked off with the Dutch elections resulting in the incumbent Mark Rutte winning a majority.
The Dutch elections brought a sense of relief to the Eurozone as investors were bracing for a potential turn towards the far-right and populist parties in the region. Still, despite losing, Greet Wilders’ party made some strong inroads into the parliament, which only highlights the fact that the political threat of the far-right and the anti-establishment parties still exists.
The British government also finally managed to formally invoke Article 50 of the Lisbon treaty this week, sticking to the timeline as was announced previously by the Prime Minister Theresa May.
Despite some political headwinds and setbacks, PM May managed to successfully take the Brexit talks to the next level. EU officials are expected to give a response in a few weeks time.
The month ahead: April 2017
The month of April brings with it a new set of challenges for traders as politics continue to remain at the center stage, while economics and monetary policy will likely take a back seat.
Read more: https://www.orbex.com/blog/2017/03/fx-markets-monthly-outlook-april-2017/