Leading foreign exchange expert Infinity International has urged investors to think carefully about their exposure to European markets ahead of what seems likely to be a year every bit as turbulent as 2016.
The UK-based company says that, although Europe remains a major market for UK investors, the volatility that began with the UK Referendum vote in June shows no signs of easing.
Infinity International analyst Perry Asforis said: “We are living in a world where an event, or even just a comment, can cause all the uncertainty to flare up again.”
He cited as examples the turmoil caused before Christmas when Italian Prime Minister Matteo Renzi resigned after suffering defeat in a referendum over his plan to reform the constitution and in January, the concerns raised when UK ambassador to the European Union Ivan Rogers resigned and said that Government thinking on Brexit was muddled.
Perry said: “Events like these perpetuate uncertainty among investors and that can only continue this year with continued speculation over the terms of Brexit and elections due in France, where the far right could fare well, Holland and Germany.
“All these things breed uncertainty and I cannot see things settling down during 2017. The volatility will probably continue well into 2018 because this is such a complex situation,
“We do not think that is a reason to reign back on investments. Business continues and there are some excellent opportunities available for investors in Europe.
“However, we are advising our clients to think hard about what is happening. If they have exposure to Europe, they need to think through the ramifications of continued volatility and that means calling in experts like ourselves to help them.”
Infinity International’s clients benefit from access to the company’s prominent position in the global foreign exchange market, which allows it to secure the most competitive rates. More information can be found at http://www.iifx.co.uk /