How To Take Advantage Of Market Uncertainty
“Markets hate uncertainty”. That’s one unhelpful cliché that needs to be consigned to a deep black hole in a galaxy far far away. Markets don’t hate uncertainty, they simply become more volatile when the immediate economic or political climate becomes harder to predict. The challenge for consumers is to ensure they make the right decisions during such times. The wall-to-wall media coverage of global financial markets will refer to terms such as “volatility” and “currency exposure”, and talk up the relative strength or weakness of the world’s major currencies. How do these seemingly complicated concepts impact on the day-to-day lives of individuals and SMEs? We decided to take a look at how our customers are using the CurrencyFair platform and marketplace to make the most of periods of uncertainty.What is market volatility?
To put it simply, currency volatility refers to the uncertainty about the size of changes in a currency’s value. In a highly volatile climate, the currency’s price can be spread over a larger range of values. This means that the relative strength or weakness of one currency against another can change substantially.
What does volatility mean for consumers?
