While 2018 may still be in its infancy, the risks hanging over the year’s foreign-exchange (forex) markets have been brewing for some time. An assortment of global hotspots are positioned to affect major currencies and their viability on forex markets.
Banks may see a benefit in political involvement, but it also brings risks of influencing political decisions, especially legislations and regulations that would affect their businesses, but this ideal may not line up with the reality. The public’s skepticism of banks’ integrity has not improved much recently—in large part due to their relative lack of transparency regarding their political engagement, as transparency studies show.
Since the United Kingdom took the decision to opt out of the European Union (EU) last June, a wave of populist, anti-European sentiment has swept across the continent, putting the very existence of the political bloc under threat.