The global pandemic of COVID-19 influenced both social and financial spheres in 2020. Though it’s 2021 already, the market still isn’t stable. Let’s see how the market works today and what to do to be a successful Forex trader.
What’s Happening in the Trading World?
The global economy has been showing weak data since the last year. This is especially true for European countries. The coronavirus pandemic has only made things worse. All the gaps and weaknesses in the economy and politics have come to life. The world’s central banks and other financial regulators have initiated actions to strengthen the economy, but in the end, they have not greatly saved the situation. For example, the ex-President of the United States announced that Europeans should not cross the borders of the United States, while economic strengthening is being carried out at a slow pace.
All these factors have caused strong concerns among the investors of online CFD trading and Forex market participants. The actions of economic regulators did not have the desired reaction. Looking at the history of the stock markets, it can be noted that after the crash in 2008, the market periodically experienced declines of one or two trading days. The decline of 20% is another factor contributing to the influence on depositors, causing an increasing interest in types of trade that involve short-term deposits.
The collapse of the fund market will occur immediately after the economic losses due to the coronavirus increase, with activity levels falling in all economic areas. Due to the quarantine measures, many production facilities are closed, restrictions on transport movements also affect the economy adversely, and negative market sentiment is only growing every day.
The oil market is falling; the pandemic has provoked a decrease in demand. The breakdown of the agreement between the Saudis and the Russian Federation also played a significant role in this. The parties initiated an increase in production volumes, and this will negatively affect the entire market because oil prices have dropped by 30%. The current situation on the Forex market and in the global economic sector only proves that COVID-19 doesn’t lose ground.
What Should You Do?
Lockdowns and the issue of the change of power in the United States remain the key points in Forex trading. Perhaps due to upcoming events, investors are in no hurry to buy. Is it possible to make a profit on the Forex market in connection with the coronavirus, and how high will this profit be? For example, brokerage firms in Australia have dramatically increased their performance. What can be observed in the Eurozone and the Middle East? According to statistics provided by financial experts, trading volumes on the Forex market increased in the first quarter of the previous year.
In 2021, the Forex trading trends are probably unpredictable, so you have to be careful what you invest in. Take into account the Coronavirus situation in the world, monitor the buying ratio, and be attentive. The current circumstances dictate new rules, and it applies to all life areas. The ultimate tip for all investors is to pay attention and see how the world changes every day. And remember about patience and endurance. If the day after the purchase the stock has grown by 3%, this is not a reason to throw it off and rejoice. Over the next month, it can grow by 10%. Trading and investing require regular work, a busy schedule, knowledge, analysis skills, and courage in making decisions.