Learning About The Future of Forex Trading and What That Could Mean For You

 

 

The coronavirus pandemic has caused the forex market to become increasingly volatile, causing investors to ask if they should be trading at all right now. But, the future of forex is not in global conditions. It’s in the decisions traders make from today.

To say that this year ushered in the unpredictable could be considered an understatement. From close calls with war to shocking natural disasters, and finally, the 2019 coronavirus (COVID-19), it was clear from the get-go that nothing would be normal about this year.

International trade and conventional practices in both the business and financial industries took a major hit due to enforced lockdowns by governments worldwide, as the struggle to contain the virus charged on.

Challenging Times For Economies Across the Globe

Travel and tourism came to a screeching halt, causing waves of panic to ripple through the global economy. When one considers the fact that major European countries and other international players rely on tourism to aid their respective economies, the dim reality brought in by the pandemic becomes clearer.

On a local scale, regular day-to-day transactions were forced to take on a new normal. Most citizens could not go out to perform their financial obligations, the way they would before, because of COVID-19 safety measures.

A report from Regal Core Markets found that restrictions in movement and the subsequent decline in business hours heavily impacted the forex market as well.

“Medium and small establishments were forced to close or even declare bankruptcy,” the report further stated. “Work-from-home became the sudden norm, and physical trades were significantly decreased to a minimum.”

The whole business world felt the effect of these swift, sudden changes, with scores of companies being forced to lay off employees and even shut down. Reports from CGTN indicated that mass unemployment and a decline in spending capacity are among the key factors that contributed to the market’s instability and the possibility of a global recession.

 

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