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Gainsky – Trading Forex News and Updates in Present Day 2020

by Mohsin Malik

2020 continues to be an unpredictable year, as the world is forced to deal with challenges from every direction. From the constant hurdles presented by the coronavirus, to political tensions across the globe, and the threat of a looming recession. All these factors matter to traders because these are the influences that affect the market. Without sufficient knowledge of where the world is at, professional traders are unable to make optimal decisions – hence the need to be keyed in as much as possible. If you want to make much profit with money investments. Gainsky is an exceptional Forex trading platform where you can trade your virtual currency with ease for a short as well as long period of time. 

For the curious eye wondering what the markets look like, in relation to recent global events, this is where the world is currently at:

The US Dollar Continues to Climb

Last week ended on a high for the dollar. Reports from 30 October 2020 showed that the USD had managed to maintain its overnight gains. Referred to as the “safe-haven dollar” as many traders tend to find comfort in trading a “stable” currency, the USD was able to rise to a four-week high. This came as a minor surprise to the trading community, considering the tumultuous phase the United States is about to go through in the election and post-election era. But, for the time being, the dollar appears to be doing well over its counterparts. 

Some say the currency could also be benefitting over the current issues within Britain and European regions, directly related to the coronavirus and forced lockdowns. For the first week of November, however, and the coming weeks all eyes will be on America, the dollar, and how the markets respond to the election results and looming coronavirus restrictions, respectively. It is possible that the USD will experience a series of fluctuations, affecting its relationship with other currencies. As the following week unfolds, it will be easier to see what this will mean for the market.

Euro Fluctuates Under the Weight of Lockdown and the ECB

The final week of October was a challenging one for the Euro, as it slid to a four-week low of $1.1640. This comes right in the midst of a new series of forced lockdowns as the European region braces for the second wave of the coronavirus set to hit the winter period. The onset of nationwide lockdowns in countries such as Germany, France, Belgium, etc. also ushers in bigger financial constraints to worry about. Gainsky reported on the impact

 Gainsky reported on the impact

COVID-19 has had on markets, stating that, “the forex market has had a significant blow due to the sudden onset of the 2019 coronavirus (COVID-19) that is currently ravaging the world, affecting international trade due to enforced lockdowns and temporary closures of various businesses.”

Unemployment in the European region could cause further fluctuations for the Euro, especially with the European Central Bank (ECB) moving to release another easing package in December. 

Nordea analyst Jan von Gerich, in a research note, remarked that, “The ECB sent strong signals that another easing package would be in store in December, as the economic outlook had darkened notably. The ECB’s stance leaves some more room for bond yields and EUR/USD to fall further.”

The EUR/USD is the main pairing to pay attention to in the coming period, as both regions prepare to tackle their own challenges. 

China’s Yuan Leads Gains in Asia With Biggest Advance in a Week

In another part of the world, the Asian markets appear to be progressing fairly well. China’s yuan outperformed all other currencies in Asia, even in the midst of a tightening of cash supply in the region. Demand for the yuan typically rises toward month-end, as banks hoard funds for regulatory checks and exporters sell their dollar receipts.

The Chinese currency is poised to advance for the fifth month, thanks to its wide interest-rate premium over the U.S. and the economic recovery from the virus pandemic. The yuan also received a boost from optimism that it would remain strong during a major meeting of the Communist Party this week, where leaders outlined economic plans for the next five years. Signs of economic progression have inspired confidence in traders and investors alike, boosting the currency in the long run. It could be interesting to see how the yuan performs against the dollar and euro respectively, as the next couple of weeks unfold.

What Does This Mean for Trading?

Looming retrenchment, economic uncertainty, and the threat of a second wave of COVID-19 is enough to make the masses despondent. But, there is also hope for the trading industry as more people begin to lean into alternative ways of accessing financial stability. 

“Risk” is one of the reasons why interested novices have stayed away from Forex trading in recent years. People believe that trading is too risky to partake in because of how volatile the markets are – especially now. But, it’s important to note that the market downturn that ensued earlier in 2020 had more to do with the effects of the global pandemic than actual influences from the forex industry itself.

This is simply a global issue that can be leveraged in favor of traders. Hence the gradual increase in trading across multiple platforms – there are more people seeking stability through this industry. Everything you need to know about foreign exchange and cryptocurrency. Gainsky provides consistent superior risk-adjusted returns to its clients and a unique wealth management experience in the industry. Visit us today!

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