When trading, it is vital to understand how Forex market trends work, what drives them, and how to follow the trends of currencies.
Firstly, what is a trend after all? A trend is how the prices tend to move upwards or downwards (or in other directions) over time.
As we are all probably aware, COVID-19 has massively affected the global economy. For about 2 years now, we have been on a lockdown and re-opening situation which together with inflation, and other international events have affected the FOREX market.
One observation from trade analysts is that the US dollar seems to be getting stronger – meaning that with 1 USD you’d be able to buy more of another currency than you could before. Overall, it seems that the USD has an ‘advantage’ over the euro and the yen (Japanese Yen).
In addition, the AUD and the yen appear to be becoming weaker in 2022, against the USD. It is predicted that the yen is likely to fall even further in the next weeks, whereas the AUD was predicted to range between 0.6-0.7 in 2022.
Gold on the other hand is thought to be a clever investment in some cases. Its worth has increased due to various factors, one of which is the general anxiety induced by the financial crisis following covid. Therefore, it is predicted that in 2022 gold might become stronger. However, it’s important to evaluate the risk before such a trading endeavor and think about whether it is beneficial for your specific situation to invest in gold.
To conclude, trading apps have made trading accessible and easier for millennials and gen Zs. A boost of new traders (experienced and inexperienced) in the market inevitably means that currency trends are affected as well. Therefore, it is vital to remain up to date with current trends and read reliable sources of FOREX news, to avoid potential misinformation that might lead to losses.