The turnout of events socio-economically in this second half of the year 2020 can safely be described with terms like spontaneous and unforeseen. Unsurprisingly, there has been an increase in the rate of deterioration of the economy worldwide. Countries that were already facing some level of challenge and difficulties have taken a downward slope and received a heavier impact of the crisis.
The financial market has not been left out in this decline. Our experts at DubSEO have gathered that currencies are steadily losing their values, and share prices are fluctuating uncontrollably. Since the Forex market is very important for traders, it is only normal to show an interest in the future of the market, and for traders to find out the best methods to take towards growth in the present situation.
The Forex trading continuity plans have experienced a lot of pressure. The financial markets across the globe are currently facing some kind of volatile condition. Considering how to spot matching hit over a hundred billion dollars in a day, markets need to act quickly in this period of volatility. However, since a lot of businesses took to the work from home method instead of completely laying off their workers, their operations were not halted. Since businesses are still doing their best to trade, there are still opportunities for Forex traders to capitalise. The fact that there are some laid out plans for Forex market continuity should provide a level of assurance for Forex traders.
Following our experience from conducting Forex SEO for a lot of companies, we have outlined some certain impacts of the pandemic on the world of Forex. Some of them include;
- There is a high tendency that the effect of the COVID 19 will continue through 2021.
Studying the global currencies, the chances of them regaining strength and value anytime soon are very low. Since the government have released feasible measures to combat the effects of COVID 19 on the economy, the interest rates will have to remain low, while competitive exports are increased.
Using a country like Vietnam as a case study, the central bank hasalready expressed its preferencefor the weaker currency being maintained as this is a major way of helping competitive exports. Automatically, the inflow of cash from overseas will reduce. However, the financial stocks in Vietnam are holding out quite well. Despite a reduction in growth, research shows a likely increase in the coming year.
Having this in mind, Forex trading investors that are targeting Asia have a better chance for stocks as they offer greater value in this region.
- The presidential election
During these last months of the year, it is expected that the US will record its largest economic decline. It goes without saying that the pertinence of the upcoming presidential election cannot be overemphasised.
The current president will have to suffer this effect since the increase in the US economy before the era of the COVID-19 was supposed to be a major election strategy for him. The current polling is also highlighting this issue presently, it is rumoured that the competitor Joe Biden is leading the metrics in a lot of states.
Following Joe Biden’s representation of a more stable electorate choice, and Trump’s representation of a combative, unpredictable politics, if all goes well in favour of Joe Biden, the financial markets are likely to get a reaction following the expected currency surge in these last few months of 2020, and in the coming year 2021.
It is not news that the pound is still trading in a depreciating fashion against dollar and Euro. This has been in place since the Brexit vote which took place in 2016. Also, recently, the British pound has displayed some level of volatility against the greenback, frequently falling to noticeable low levels.
Following David Frost’s comments to MPs about the stalling nature of talks, the British pound recently experience a sharp decline when compared with several currencies. Also, the options market is constantly discussing the volatility in the British pounds in June when the EU leaders will have a necessary meeting to discuss the progress of talks, and also spread out their expectations for the next terms.
It is a likely fact that traders will hedge against the pound as we progress in this year 2020. Since, it is also likely that the British pound will suffer further losses as the trade talk deadline which is fixed for December 31st approaches, and also a likely cancelled deal for Brexit.
As a trusted Forex SEO company in London, our take on the whole issue is that despite the volatility in the Forex market currently, there are still some opportunities for successful trading. With the right experience and knowledge, you can hone your Forex trading skills and turn the currency market in your favour.