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April 19, 2021 at 7:46 pm #1303pearlineestep24Guest
The COVID-19 pandemic resulted by China is showing no signs of stopping, but forex trading has no significant effect compared to what other financial market faced.
Investors are putting their punt on foreign currency exchange and getting returns on wise investments.
For hopping on the opportunity, people need to chalk out plans and get their kitty full before the bull again starts running at the exalting heights.
Let us find out some of the most anticipated currency pairs in the coming days.
Performance of EUR/GBP and why to invest in the forex pair
Ever since the UK announced for the Brexit, the speculation was rife that the forex market would go awry in the European nations.
But ever since an extension on of the transition period has come up, things have cooled down. The market has become stable and giving hopes to buyers. In the quarter two trading, the currency pair ranges between 1.2070 – 1.2815 on the exchange.
The Euro-British Pound pair has stabilised when compared year on year performance.
However, there were some high points witnessed on 9 August 2019 and 18 March 2020. Also, it touched the lowest on 18 February 2020. But the moot point is, it has surged ever since then. And that offers a bright hope.
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Looking at the performance, investors will have chances intermittently.
USD/GBP currency exchange
The United States of America and the United Kingdom of America, both are robust economies with Veto powers. They have in them to rock the world with their decision making.
And the past of both the countries beckons. USD trades more than any currency, while pound sterling is one of the strongest currencies in the block. When both get transacted against each other, there is a domino effect. It is bound to strengthen the position of an investor.
From July 2019 till the current time, the market has seen a lot of improvement.
However, during the session, it touched the pinnacle near 16 December 2019 and remained steady until striking to a new low on 19 March 2020. But ever since then, there is no looking back, and the Corona Virus pandemic didn’t deter its rally and movement.
Japan has the third-largest GDP of the world. Henceforth, the currency is one of the best in Asia and the world. Thus, experts and traders have faith in Yen. Like any other currency pair, the dark clouds are hovering over the USD/JPY pairing following the epidemic.
But looking at the brighter prospect of their economies, the doubts shy away subsequently.
However, in the recent past, the pair witnessed a deep plunge along with other markets in March 2020.
Interestingly, it bounced backed with investors keeping their faith in it. Since July 2019 to the present time in 2020, it is sustaining and trying to touch its lost glory. And a wise buyer would know, the best time to invest is when the chips are down and not at the hilt.
Also, given the point, the US has four times the GDP of Japan, and it sits on the top of the world with its economy. Due to this, there’s always a ray of hope even during tough tides.
USD and CHF pair
The currency pair comes with a handsome name Swissie.
Swiss Franc (CHF) is a haven for traders who are beginning to recognise the worth of forex trading in the opinions of experts. In the tumultuous times, people from sundry nations surrender their money in the renowned Swiss bank to evade taxes and punishable actions.
The decades’ old practise has led the country to stockpile billions of dollars of foreign currency. Hence, the base of CHF is empowering as exchange money.
USD/CHF together are doing reasonably well since the past year, evading the impact of Corona Virus.
Ever since July 2019, it witnessed its low on 29 November 2019. It shot up on 9 March 2020 and then maintained its graph without giving many hiccups to its buyers. In the current year, it is performing better than money other pairs. So, having it in the portfolio will enhance the prospect for an investor.
USD and CAD pair
USA and Canada are neighbouring countries with mild restrictions for people commuting for work in both nations along the border sides. It is the testament of friendliness and faith the countries put on each other. Following the requisite, the currency pair USD/CAD is amongst the priority of forex traders for investment.
In July 2019, like many others, it went through a slippery-sloppy phase. But it improved the performance from there on to be on the peak on 15 March 2020. And after the slight slump, it is keeping up with the traders’ expectations. So, long-term buyers can hold it for a while before exiting.
By that virtue, people shouldn’t get worried about the ballooning deficit as all the G-10 nations are going through the phase.
Why is it right to trade forex in 2020?
The financial market has a thumb rule that the right time for investment is when the market is touching its lowest.
Due to pandemic, every industry is struggling and down. It is trying to pick up the pace. A trader who can take a slight risk here would benefit for a longer run. In 2008, people who invested during the recession reaped sweet fruits after everything settled like a dust storm.
The author is investing advisor in forex trading company in the United Kingdom.
Several genuine brokers are available to trade in the forex market pairs in 2020. Real complete analysis of