What will happen with the forex market post-coronavirus?

Forex Distribution

We’re all aware of what happened over the past few months, as the coronavirus pandemic took the entire world by storm. However, surprisingly or not, it also managed to create a significant amount of opportunities, across numerous industries and financial markets.

Forex can be considered one of the most relevant cases in this situation.

Specifically, we’re talking about what seems to be a temporary reverse of a trend for reduced volatility and trading volumes in the forex market, following a gradual economic recovery. Therefore, this entire wave of uncertainty and volatility, triggered by the COVID-19 outbreak, somehow encouraged investors to look into the forex market. And, as a side note, imagine that many of them were previously targeting more secure sources of wealth, such as bonds or stocks.

The market is now more volatile

As expected, this new influx of investors brought some consequences as well, as the market reached new levels of volatility, thus leading to what experts call a cycle of boom and growth. And this is not everything, as this phenomenon outlooked the entire marketplace.

Sure, this is not difficult to observe, as the number of search queries for “forex trading” grew exponentially, according to a report from Google Trends. There is an explanation behind this, of course: people became interested in trading during the peak of the global pandemic, in April, while the interest began to fade in Q3, as economies were starting to recover.

What’s next for the forex market?

As the end of 2020 is getting closer, traders are expecting a decline in volumes and volatility. On the other side, this entire uncertainty can actually be able to ramp up, thanks to a set of important geopolitical and socio-economic issues.

There are many other aspects that could impact the forex market, like a potential ‘no-deal Brexit’ or the $2.2 trillion stimulus package being rolled out in the US, not to mention a potential change at the White House.

Therefore, we’re all looking forward to seeing some serious fluctuations among major currencies in the last quarter of 2020 – but also beyond – as the USD, GBP, and the Euro will be impacted. But traders and investors willing to risk can continue capitalizing on this volatile market and use all upcoming global events to their advantage!

Forex for Beginners