COVID-19 has spared no one. It has forced industries to adapt in rates and extents we haven’t seen before. Businesses have had to ramp up digitization and automation to keep up with the demand and comply with all health and safety protocols at the same time. The risks and losses are so amplified that many companies have closed or are barely keeping afloat.
The Forex market has also felt this increased risk with increased market volatility from global inflation and decreased purchasing power. However, it has also seen global growth in terms of trading volumes and accounts in 2020.
And for the year 2021, here are some things to expect in the Forex industry:
On to Safer Currencies, Still
The market has suffered so much fluctuations in the market value of currencies, with the US dollar dipping last year. Even with bouts and hopes of economies thriving, especially with the trend of relaxing restrictions in countries like the US, it will be hard to climb and get out of this fall. The gradual opening of economies must be sufficiently accompanied by fiscal and monetary policies geared to dealing with this crisis to establish a degree of stability. Until then, trading will favor and continue to pivot to safer currencies.
The Rise of Online Platforms
The pandemic has also forced and sped up the shift to online platforms. With this demand, there has also been the rise of online trading platforms such as trading apps and cloud-based platforms, with a consequent increase in new accounts. Trading apps and copy trading platforms have made it easier and safer for beginners to start with Forex trading and enter the market. Data processing and storage have been significantly more efficient with cloud-based platforms.
Our New Game Changers
As with more time at home to research and study, along with the ease and safety that online platforms have brought, there are more new accounts and younger people joining the market. This is also augmented by the inherent digital and technological literacy of the Gen Z and millennial generation. More are getting the opportunity to learn and even be self-taught, despite the current risks and fluctuations we are seeing in the market.
Increased participation with newer accounts and people is expected given the rise of online platforms and the current remote set-up most people have. However, these possibilities are still just possibilities and rely greatly on the rate at which economies will be opening up in the next few months and the hopeful recovery that comes with it.
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