Is Covid 19 Impacting the Forex Market?

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  • 5 months ago

    Admittedly yes, there are two concerns which are shaping up to impact the Forex  market. First, a decelerating economy and the fall of the crude oil prices. Decelerating economy implies value of the currency is likely to depreciate while certain major currencies will strengthen. Technically speaking not all currencies will be impacted but we need to watch out how the major currencies will respond. For example the US dollars has appreciated by 3.5% in the current year and similarly the Euro is showing a positive rally. The silver lining is, since currencies are centrally controlled by the respective countries we may not experience high volatility vis a vis the share markets.Personally i feel this is right time to invest-it depends on your risk apetite.

    Equally oil value going negative has to be monitored since it is also linked to petro dollars and thus the USD.

    Finally there is opportunity in this crisis too..!!

  • 5 months ago

    If you mean indirectly at the very least, then yes. Saudi Arabia and Russia's attempt to dump oil on the market in order to wipe out higher production cost competitors didn't work out quite as planned. They overdid it during a time when the virus significantly decreased demand. It's going to take longer than expected for the Russian ruble to recover given that oil prices are going to take longer to recover.

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