As COVID-19 continues to ravage economies worldwide, traders are on the lookout for new markets and opportunities. Though the volatility is bound to decrease at some point, for now, the exchange rates will continue being reactive to shocks, in turn increasing both the risks of Forex trading and the possible opportunities.
Certain patterns visible in 2020 will likely continue into 2021 as well. The pandemic will be a major consideration in the new year too, creating volatility with regard to control of the coronavirus. Nonetheless, policymakers are proactively discussing growth and inflation to reduce public debt burdens. The biggest takeaway from the past year has been not to take risks. OctaFX leading analysts advise to look at graphs displaying fluctuations of a chosen currency.
The pressure remains high on the U.S. dollar, and it’s expected to fall by about 5–10% more but not to the levels of 2008, as President Joe Biden will return to a rules-based international order with a balanced global growth. The Australian dollar ended the year pretty strong and is safe, owing to local interest rates, which will be low in most developed countries.
The U.K. pound will continue to face pressure due to the rigid lockdown measures imposed to contain the new variant of coronavirus and subsequent slow recovery rates. Despite suffering from a second wave of coronavirus, the Canadian dollar still might have a favourable run in the new year as the situation stabilised to a large extent in December. The COVID-19 pandemic proved supportive for the euro as traders turned their attention to the problems of the U.S. dollar.
Currently, there are several trading apps helping amateurs to begin with Forex trading, during these extreme sensitive market cycles. These apps are one of the many trends expected to grow in 2021, since it’s common wisdom by now to keep mobile trading services close at hand at any time. They shall lend support to new traders, especially, to follow one trading strategy without risking more capital than necessary.