It is hard to keep up with world events in these turbulent times. But as a FX Market trader, one should always be aware of the news not to miss the right moment for entering the market. The unfortunate outbreak of COVID-19 is the global headliner these months.
Usually, when a crisis like this hits the market, local currencies suffer, and people tend to invest in reliable, less volatile assets like gold, for example. We have seen spikes of volatility for currency pairs that included CNY at the beginning of 2020 year. The AUD was also affected as it is the biggest trading partner of China.
But here is what we witness in the market now. Investors still tend to support traditional currencies like USD, EUR, CHF, and JPY. The EUR/CHF has reached the highest price since early January. At the same time, more challenging assets like Aussi, Kiwi, and Dow Jones are getting back to normal and enjoying the appetite for risky trading. Oil prices are on the back foot rising US inventories. USD/CAD is still low even after some slight bounces in price.
Keep in mind though that the stage of economic response is very early to make long-term predictions. The situation with COVID-19 is unusual, so the past results do not define a future trend. Stay alert of the top-influential economic indicators and follow a market movement. Remember that the situation remains fluid. So, be healthy and work out the odds before rushing to the FX market!
Why Forex Trading is Booming
2020 is a ruthless year. The whole population of Earth is being tortured by numerous disasters, including global health and economic crises, civil confrontations, and local weather anomalies. Ironically, for the Forex market, the conditions are quite favorable. Let’s find out why?
More people stay at home
Due to the lockdown, the unemployment rate is unprecedentedly high. People are searching for alternative income sources and have enough spare time to learn something new. So, why not combine the two?
FX market is easy to access
The Forex market features around $5 trillion worth in trades that are performed daily. The currencies are constantly being exchanged, forming liquidity. Forex brokers allow every person to start trading fast and efficiently. Just open an account with the licensed, trusted ECN broker and start trading.
You can begin with a small initial deposit
The majority of brokerages offer their clients leverage, which helps people with not enough capital to trade bigger positions. It is a good opportunity for gaining profit, but it should be used wisely. Make sure that you manage risks when trading with leverage.
The market is volatile
Due to non-stop changes in the economic and political situations, the prices of the most widely-traded currencies such as USD, EUR, JPY, GBP, CAD are facing spikes of volatility, which provides great opportunities for skilled traders.
Despite the unstable situation in the world, Forex trading is in full blossom, offering a way to earn money or to keep your funds in the account until the ‘sky clears’. Stay alert of the top-influential economic indicators and follow a market movement. So, be healthy and work out the odds before rushing to the FX market!