The forex market has been potentially volatile in the year 2020, largely due to the pandemic. The fluctuating trends have somehow managed to show highly profitable results for a few, but have also left many traders or investors empty handed. As the market was precarious, a significantly fewer number of individuals thought to give it a chance, and many just restricted themselves to speculating the prices. There was a significant shift in the trading strategies, and people played cautiously with their money.
As the world has still not been able to pull itself out of the pandemic, not much is expected to happen this year in the wake of recent events. Although forex trading is one of the most actively growing businesses, the potential risks involved often limit its scope. As it is global and involves assets of various countries, it is no wonder that the ongoing global events will affect it. This has also resulted in fewer investments coming in from the individuals. This is a primary reason that the binary option brokers available for US traders are playing a decisive role in boosting the trading careers of beginners in the market.
Will the economies be able to recover through the pandemic?
The most probable situation at hand is that various economies worldwide are struggling to get back to their pre-pandemic level. The factor that mainly determines how well the forex trading will perform in 2021 is how fast people build their confidence back in the financial market. As many have suffered great blows, it does not look imminent. People are turning their heads towards the binary options brokers available for US traders to conduct more successful trades in the forex market.
That is why it is believed that the dollar would not be able to perform well due to the move of USD from precautionary holdings into emerging markets with a EUR/USD at 1.25. The policymakers are trying hard to cater to the widespread inflation caused by the pandemic, which has affected the market a lot. Thus, it will be a bumpy road for the forex industry to make its way to the top again.
The forex trading will depend on the dollar rate
Everybody has set their eyes on dollar prices to estimate the upcoming fluctuations in the forex market. As the US dollar index suffered a great blow in 2020 from 103 points in March to 90 points till September, it is expected to go a lot lower in the coming year. However, when we see the Australian dollar, it ends on a higher note with the end of 2020 because of the lower interest rates in the developed countries. The Australian reserve bank may further make use of this opportunity to put more pressure on the international market and maintain its rate.
However, nothing can be said with surety as it depends majorly on the continuation of the high and lows in the commodity segment. The commodity-related currencies are expected to perform a lot better than the others if and only the commodities grew hand in hand with the economy. In these crucial times when the market is too risky, traders can keep themselves on the safe side by considering binary options brokers available for US traders. As the forex market has also been able to bring in profits for many people, having a reliable and credible Forex broker will increase one’s chances of making it big in the market.