Conference Dailys TRADETech FX Daily 2018 Wrap-up | Página 4

THETRADETECHFX DA I LY key takeaways TAKEAWAYS TradeTech FX Europe 2018: The key takeaways T his year’s TradeTech FX Europe conference has closed its doors and the stands have been packed away, but there was plenty to take away from all the discussion panels, keynote speeches and working groups across the two days in Barcelona. Whether you stayed until the bitter end or were unable to make it Barcelona this year, here are some of the key talking points from this year’s TradeTech FX Europe event. Trump and China conflict dominates the landscape It’s hard to escape any news relating to the in- cumbent President of the United States and his predilection for poking the proverbial hornet’s nest whenever he sees fit. The FX markets know this better than most and the 2018 edition of TradeTech FX Europe found much to chew over when it came to the US Commander in Chief. At the top of the list was the ongoing trade war between the US and China as the two na- tions impose escalating tariffs upon each other, and while proposed discussions between the two governments may go some way to diffusing the situation, the unpredictable nature of Don- ald Trump means no-one is taking anything for granted when it comes to currency trading. Speakers opined that Trump has engaged in “a game of chicken” with China over trade amidst a flurry of claims over the strength of 4 THETRADETECHFX DAILY Issue 2 the US economy but will have little appetite for playing that game over the long-term with the mid-term elections just around the corner and a limited time in power. For its part, China has showed no desire to shrink away from the fight the Trump admin- istration has brought to its doorstep over the last two years, and with an economy going from strength-to-strength, pose a much bigger stra- tegic issue for some in the FX space. Whichever way the conflict between the two nations plays out, it’s a safe bet that FX traders will be among those at the forefront to know about it. FX is a risky business right now Leading right on from the discussions regarding Trump vs. China, the level of geopolitical risk hovering around the global FX markets can only be described as “Yuge”. Putting the US and China aside, there is still plenty of tension to go around that impacts directly on the FX space, which panellists spent a considerable amount of time digging in to. Europe has provided a significant level of risk lately, with the ongoing drama of Brexit playing a lead role. The UK’s approach to negotiations have put the entire financial sector on edge, as numerous firms mull over when to enact their contingency plans with the 29 March 2019 dead- line fast approaching. Then there are ongoing geopolitical issues concerning Russia, Italy and Scandinavia, the re- cent Turkish Lira collapse, troubles in emerging markets – particularly Latin America – and the unpredictability of Korea to take into account. It’s a lot of FX traders to be cognizant of at the moment, with few predicting that the global turmoil will quieten down any time soon. Big talk on tech but little in the way of prog- ress Talking big on technology is always a dou- ble-edged sword; it may sound impressive, but once you look past the jargon and shiny new wrapper, you will often find that not much has actually changed. Real innovation is a lot rarer than most would have you believe and that seem was compounded throughout the panel discussions in Barcelona, with a number of sell-side institutions lining up to espouse the latest advancements in technology without providing genuine insight into what they are doing with it. Of course there needs to be an element of opacity here – giving all your secrets away to a room full of competitors isn’t the smartest move to make, but if the industry wants to be taken seriously in its approach to technology innovation, sooner or later the cards need to be shown. Repeated assertions about how artificial intelligence and machine learning will only go so far without the evidence to back it up.