All renowned traders and investors in the Forex market agree on one point. For them it’s important to understand that world events are part of that fundamental analysis in Forex. Therefore, at CryptoTrend we take a look at the world situation and currencies at the beginning of this week.
The US, Asia, UK and Europe are the epicenter of attention for Forex analysts. These regions are where the main trends for the Forex market are defined. And it’s also where traders should focus their trading.
For a good trader is one who knows how to intelligently analyze his trades. Achieving this through a good structured fundamental analysis of Forex.
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America: The United States and the American Currency
We begin the review of the world situation and currencies with the dollar.
The dollar is one of the most relevant currencies in the Bitcoin Billionaire market, as the world works through the greenback. And most traders and investors concentrate their trading on the American currency.
The coronavirus has affected all countries, causing economic recession and economies that are somewhat hanging by a thread. And now, it’s starting to be the case for the dollar.
Because, although it began as the safe-haven currency of investors and traders at the beginning of the pandemic, its performance has been in freefall. In the chart below you can see the evolution of the dollar index, against the world’s major currencies.
Trump Promises Tax Credits for Companies that Recover Employment Returns: One of Trump’s goals is to cut America’s dependence on China. And so, with this proposal, he intends to encourage domestic companies to corner the market, so that no more Chinese products are consumed. This could increase federal debt, affecting the dollar.
Concerns about the U.S. economic recovery are heightened by a regional survey of manufacturing companies, directly affecting the dollar. On Monday, the dollar index traded negative at 0.16% down to $92.869.
The dollar continues to fall, hitting new lows in the early morning sessions on Tuesday. The dollar continues to fall, hitting new lows in the early morning sessions on Tuesday.
This concludes the review of the global economy and currencies in the Americas.
Why has the dollar collapsed?
Europe is the region where a gradual positive recovery from the ravages of the coronavirus has been achieved. Since the positive figures, almost in their entirety, emanate from this region.
However, there are still many bumps in the road for the European bloc and it is important in this review of the world situation to understand what is happening in Europe.
Well, this Monday European actions closed upwards because there was a bias towards China. Thus increasing in the face of a new stimulus for the world’s second largest economy.
Added to this, travel stocks, a key element of many economies in the region that depend on tourism, managed to drag European figures down.
European airlines and travel agencies were affected after Britain added more countries on the continent to its quarantine list.
„What we have is a significant amount of uncertainty about the evolution of the coronavirus pandemic. And that maintains a risk premium for the transport, leisure and hospitality sectors,“ said Alastair George, chief strategist at Edison Investment Research.