The COVID-9 continues to sweep the world with no end in sight, affecting many lives and businesses. This pandemic has forced many people to stay at home, employees to work from home, and businesses to adjust their working conditions. Worst, many have been laid off from their jobs and have lost their primary source of income.
With all that’s happening, the financial markets have also felt the scare of the coronavirus with the stock market staying volatile recently. The Forex market has also been behaving a bit strange, with many major currencies facing uncertainties. You can also check the freetrade app for more information related to stocks.
In this blog, we’re going to focus the discussion on the impact of COVID-19 on the USA stock and the Forex industry.
Impact of COVID-19 on Forex Industry
The start of the year 2020 wasn’t what everyone hoped for. We were greeted by the COVID-19, an infectious disease that severely damages the lungs. Reports say that the coronavirus started in the last few months of 2019. The impact of COVID-19 continues to be felt by many, and business-wise, this pandemic has caused unprecedented risks and challenges on different markets globally. The Forex market is one of them. Although this market is known to be a volatile one even before the coronavirus, it has become more volatile in recent weeks. This has pushed Forex brokers and fintech companies to provide their clients necessary measures to assist them in their trading.
With global recession in sight, it’s predicted that there could be currency wars. Financial experts around the world are working towards measures to keep such incidents from happening. The Forex market, in general, has been suffering from fluctuations that make traders and investors anxious.
Most currencies, if not all, have suffered due COVID-19. But Forex traders have their eyes on major currencies that have taken a major beating, which includes the Chinese Yuan, U.S. dollar, Australian dollar, as well as the Canadian dollar.
That said, in order to survive Forex trading amid the COVID-19 pandemic, traders must make some adjustments in their FX trading strategies. However, Forex professionals don’t highly recommend tweaking strategies so much as it might result in unfamiliarity. Traders, according to them, should look for other opportunities – like set their eyes on currencies that have so far shown resilience such as safe-haven currencies like the Japanese yen.
COVID-19 Effect on USA Stock and brokers’ business
Aside from the Forex market, another market that the coronavirus has greatly infected is the stock market, specifically the USA stock market. This has given even best brokers forex trading platforms that offer stocks trading a headache. With Forex traders and investors scrambling, the USA stock has seen major fluctuations since the rapid spread of the coronavirus. Brokers advise their clients to glue their eyes on their computer screens and monitor movements in the stock market.
In fact, US stock market the Dow Jones on March 16 suffered its second-worst day ever, falling almost 13% at 3,000 points. The S&P wasn’t also spared, losing all its gain last year, and was down almost 30% on the same date. Major central banks all over the world have felt the need to step up their responses to alleviate the impact of COVID-19. To keep the financial markets functioning, the Federal Reserve has launched a series of programs for struggling small and large businesses in the U.S.
COVID-19 cases in the U.S. have surged in recent weeks, having the highest confirmed cases at 399,081 with 12,907 deaths.
Future of COVID-19
Truly, COVID-19 has affected our lives in ways we could never imagine. The USA stock has suffered major declines, forcing the Fed to adjust measures in order to lessen the impact of the pandemic. The Forex industry has also felt COVID-19’s storm, with major currencies fluctuating in recent weeks. This said, Forex brokers must provide their clients the best service possible by showing them that they got their back during these challenging times in the Forex market.
To everyone, let’s do our part in flattening the curve. While medical professionals are fighting for the lives of those infected, let’s stay at home, be alert, and keep ourselves healthy. Right now, we can only hope for this health crisis to end sooner than later.