The forex market is highly reactive and responsive to global developments. This is also the reason that forex traders and investors keep a constant check over global news and updates to analyze the market performance. Traders find reliable and credible forex brokers to handle their trading activities for them. These brokers conduct detailed research, study market trends, and patterns to make predictions which helps in minimizing the risks of an investment in the forex market.
However, there are events that majorly impact the forex market within a few moments. They are not only hard to predict but their influence is also generally long-lasting. These events shift the mood of the market and the investors as well. This scenario emerged when the world was exposed to the COVID-19 pandemic, and it still persists all over the world. Europe has majorly suffered from the virus and has struggled to cope up with the financial percussions of it.
Euro hitting new market lows
The newly elected President of the US has majorly emphasized increasing US treasury yields to strengthen the US Dollar in the market. As a result, Euro and Pound forex markets have struggled in the last few weeks. With the threat of the virus and new lockdowns in different European countries, it is highly unlikely for Euro to gain strength anytime soon. Hitting a four-month low, Euro has slid back to 1.17 in the market.
Major cities like Paris have reinforced strict lockdowns, as deadly variants of the virus have increased the death rate in many regions. Europe has also had internal reservations over the distribution of vaccines which is also a factor for halted economic activities in the region. The US, on the other hand, is set to vaccinate 90% of people by the end of April. President Biden is also set to announce his big bucks infrastructure plan that is going to map out whopping spending of $3 trillion. All of this contributes to the strengthening of the Dollar, as compared to Euro in the forex market. Forex brokers are predicting a wider trading environment in the market in the coming few weeks.
Finding reliable Forex brokers in these uncertain times
The forex market is the biggest financial market in the world, addressing trading activities of trillions of dollars. However, even with high levels of profit margin, the forex market also carries significant risks of losses. As mentioned earlier, there are clouds of uncertainty hovering over the forex market in recent times. The pandemic has not been fair towards the finance sector, and it is quite visible throughout the world.
Therefore, people are partnering up with forex brokers to run successful trades and amass huge profits. With tonnes of brokers in the market, there is also a high probability that one might run into a scammer. There are many examples when fraudulent brokers ate up the funds of many investors and traders. Recently, the boss of a forex trading business was fined by a high court in the UK for providing unauthorized market advice and predictions to the customers, that too on WhatsApp. The fine of over £ 530,000 will be distributed among the customers. However, one should always be cautious as there is no guarantee that your money will be returned in such a manner. A quality forex broker may come at a price, but they are worth every single penny in the forex market.