How Is The Coronavirus Affecting Forex?

How Is The Coronavirus Affecting Forex?

The US is obviously losing its battle against the coronavirus and the USD will most likely depreciate in the near future bfoecause of the lack of monetary policies in the country. While there are some fiscal, monetary, and social measures that were taken, the largest economy in the world will still most likely be thoroughly affected.

CFDs trading specialists agree that the US is now in serious trouble since it does not deal properly with the COVID-19 pandemic. There is a national sense of individual value that is exaggerated. This makes it very difficult to enforce the restrictions that are necessary to stop this virus’ progress.

In contrast, in Asian countries, the focus is put on the responsibilities of the individual towards the broad society. In the US, priority is put on individual rights. People end up thinking that their rights cannot be questioned, regardless of why some rights are changed or modified. We only need to look at the country’s divided status in regard to gun ownership.

Unfortunately, health care is drastically affected. People would prefer to die without having health insurance instead of seeing taxes helping other people get health insurance. This individuality cult is strong and the strong American is seen as a person that can easily take care of himself, without caring about others.

What does all this have to do with the Forex market?

The USD is the most important currency traded in Forex. When the US is negatively responded to a worldwide crisis, it is normal that problems will appear.

We can clearly see that the world’s largest economy, the one of the US, is not prepared for the COVID-19 pandemic. It is enough to look at hospital beds to figure this out. In the US, there are fewer hospital beds available per person than in the country of Italy. At the peak of exposure, Italy has problems triaging people and survival becomes a problem.

Right now, the US is responding and it did enforce some financial policies. The problem is that the main measure that can help is not being applied. This is because sick-pay is not available for the lower-paid workers. With this in mind, we can only expect the virus to keep spreading and the USD to become weaker and weaker.

At the end of the day, the USD getting weaker simply means that other currencies become stronger. For the Forex market, this brings in a pretty simple opportunity. Betting on the fact that the value of the USD will go down starts to become safer and safer every single month.

Obviously, this does not mean that it is a certainty things will evolve how specialists think. As with every single possible investment opportunity, if you want to be active in the Forex market, you need to be informed and you have to take a safe approach. This practically means that it is mandatory for you to keep an eye on the news and always analyze everything that happens. This is an unprecedented crisis that can lead to unprecedented market evolutions.

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