North America earnings predicted to be reduced with a maximum $35 billion up to $40 billion during the second and third quarter of the year following the consequences of Brexit. The event has caused companies to momentarily suspend their activity from currency volatility.
The movement of the foreign-exchange has cut company results to an estimate of $20 billion for the first quarter in both Europe and the North America, which is a decrease in comparison to 2015’s fourth quarter of $39.6 billion. The fluctuation of the Dollar and the volatility of the currency has produced damaging effects to several companies, bringing forth a severe decline to North American firms for the fourth quarter.
The fluctuation of the currency may weaken a company’s competitive prices that attempt to sell products in foreign companies.
The material has been provided by InstaForex Company – www.instaforex.com