The fact that eight of the ten largest one-day point losses for the Dow Jones Index in history occurred in 2020 speaks volumes about just how unique a year it was for the markets. But it wasn’t just stock Indices that moved in 2020. Forex pairs saw heavy volatility as many people took advantage of the trading opportunities that arose. But don’t worry, this year is set to be equally rich in Forex opportunity. So, here are five reasons why you need to take on the markets, start trading Forex and make 2021 your year. To get more news about gmi review, you can visit wikifx.com official website.
1. COVID and global uncertainty sent shockwaves through the financial markets
Given it’s been the most prominent focus in our lives for the last year, COVID is number one in this list. Whether it’s the infection rate, talk of vaccinations or looking ahead to what life will be like once the pandemic’s over, it seems that for 2021 at least, it will continue to dictate our lives.
Huge uncertainty remaining in areas like travel, hospitality and retail, it’s difficult to anticipate when an economic recovery will come – if at all. Add the threat of mutated strains into the equation, and things could even get worse before they get better. But as the arrival of the pandemic caused a market-wide crash, an ending to COVID will likely catalyse an economic recovery. Such a recovery will create plenty of trading opportunities in Forex, and other markets such as Energies, Gold and Silver, waiting to be taken advantage of.
2. China-US Trade War: The aftermath of Trump’s political warfare continues to impact Forex markets
A staple of Donald Trump’s regime as president was his crackdown on, how he put it, ‘The greatest theft in the world’ referring to China’s exploitation of trades with the US. He made a point to stand up to President Xi, leader of the second most powerful economy. His imposition of stricter tariffs of Chinese goods being sold in the US heightened tensions and sparked a trade war that played a significant role on the markets.
These tensions cause uncertainty and results in traders getting nervous about their investments. Nerves then translate to a lot of buying and selling across the markets, which is why we see market volatility. Whether market prices are rising or falling, the beauty of trading is you can take advantage of movement in either direction. Volatility is the significant aspect – if the markets are volatile then there will be an abundance of opportunities to capitalise on. Don’t miss out, be sure to take advantage and trade the markets now .
Fortunately, there are plenty of these intriguing international relationships for you to monitor over the course of 2021 that have the potential to cause similar moves in Forex.
3. The Brexit fallout set to weigh in on markets throughout 2021
Talking of strained relationships, the United Kingdom and the European Union is another duo that have hardly been fond of one another in recent years. The shock result of the 2016 EU referendum catalysed heavy losses for GBP, which lost 10% and 7% against the US dollar and euro respectively. It had been over 30 years since lows of $1.33 against the dollar had been seen.
Since then, there’s been a close correlation between the pound’s value and any news or further clarity about Brexit. Even though the UK has now officially left the EU, the world is still longing for more clarity on how the future relationship between the two will look.
Throughout the rest of 2021, we should slowly start to see the true impact of what Britain leaving the EU means for business, the economy and the markets. Therefore, Forex will once again be heavily in focus. Imports seem to be one of the most prominent issues, and if we don’t see this improve it’s likely to weigh in on FX pairs like GBPUSD and EURGBP.
4. US Turmoil – With the threat of civil war still looming, it could be the markets in the firing line
The US is the global powerhouse, an economic giant that has a huge influence over economies across the world and more importantly for forex traders, huge influence over the markets. However, the US is also experiencing tumultuous times at present that are causing mass unrest and instability.
Black Lives Matter protests following the death of George Floyd threatened to spark a civil war, a situation not helped by the outgoing President naturally stirring the pot with his vocal and unreserved opinions. The presidential transition could add to the instability, with Joe Biden looking to undo a lot of what Donald Trump implemented in office.
5. Changing Times – Why a new era of society could provide a unique opportunity for traders 2021
A fifth and final reason to trade Forex in 2021 is the fact that we might be entering a new stage of society.
We’ve all been forced to adapt to a new way of living, working and surviving due to the pandemic. What was initially thought to be a temporary solution has become a more permanent way of living, but despite being well into 2021, things still aren’t looking like they will revert to how they were. The majority of people are still working from home and sectors are advancing their digital operations.
This shift in mentality relates to opportunity. Think about it, how many times do we imagine we were back at the start of the internet era? With hindsight, it would be an ocean of opportunity, with many new companies looking for investment – something you could exploit to your advantage.
| By | buzai232 |
| Added | Feb 23 '22, 12:23AM |
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