COVID-19 and Forex Currency Trading
We are in absolutely unprecedented times. Never before has the entire world had to shut down in the way it has over the past few weeks. As I write this, the pandemic continues to spread like wildfire across the globe - I just hope it doesn't find its way to me or my loved ones.
As expected with such a widespread, significant event where literally EVERYTHING stops suddenly there is choas in the financial markets across the world. With chaos comes a glimmer of hope and opportunity for those interested in taking action during this phase we find ourselves in.
Is it ethically and morally correct to trade forex during a pandemic?
Before I started writing this, all sorts of thoughts ran through my head. I wondered if I am even doing the right thing by publishing an article linked to Coronavirus and trading currencies. The way I see it, the pandemic will be a very negative experience for many, but equally it doesn't mean that only bad can come from it. Ultimately, it is what you make it - you are the master of your own destiny, nobody else.
We could all batten down the hatches at home and become obsessed with the latest news reports, but when this all ends (and it will end at some point) you will be in a worse state than when it started. Why not look to trade currencies and make the most of the unprecedented fluctations in global currencies and try to come out of this thing in a better position than when it all started? I don't see anything wrong with that personally.
How do I trade forex during Coronavirus?
Online currency trading platforms are working hard to ensure there is no break in service for traders. Whilst some of the customer support services may not be as readily available throughout this phase, generally they will all still all be accepting trades 24/7. But do make sure you use a licenced, reputable trader listed in the table below. There have been some reports of profiteering going on by rogue operators so be sure to use an operator recommended by us.
You will be able to register and deposit in exactly the same way as normal. There are no restrictions on payment providers so you will be able to deposit and withdraw as usual throughout the coronavirus phase.
Should I trade USD currency during Coronavirus?
The american economy has never seen anything like this before. The finely tuned and oiled economic machine that the Trump administration nurtured, is by many accounts in tatters. Confidence in the president is low for some following a number of cringeworthy press conferences where the president has given little reason to be optimistic and instead attacked reporters and provided 'thin' information around potential but very unlikely cures.
It's fair to say the US government have gone all out to try to mitigate the impact of coronavirus. They brought their biggest weapons to the fight, with some but little impact of stimulating their vast economy. USD will depreciate, and depreciate very fast over the coming weeks with many touting the US as becoming the new epicentre of the COVID-19 outbreak.
If we know a currency is likely to depreciate, then don't invest in it now but keep a very close eye on it. As i right this, 1 USD is currently worth £0.85 but it could tank to the realms of £0.60 or even £0.50 if the pandemic proves to be as devastating in the US as many have predicted.
The brits on the other hand seamingly have things under control in comparison. The UK health secretary, Matt Hancock has been a driving force through all this and made unbelievable progress with getting the country ready including freeing up 16,000 more beds and 7,000 medical professionals almost overnight. Through amazing collaboration between UK government and the military the Excel exhibition centre in London has been turned into an enormous hospital in a tiny space of time and is almost ready to start accepting patients.
Signs appear to suggest that the UK (GBP) could come out of this much faster and effectively than the US (USD).. food for thought - and timing is everything.
Coronavirus is temporary
One thing that is certain here, is that the Coronavirus pandemic is temporary. It will end at some point, and markets will bounce back. To make good trades you've got to buy low, and sell high. Total lockdowns are likely to represent low points and decreasing daily cases will drive positive currency performance - it's all about timing.
Use the table below to get started.
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