Foreign currency exchange is one of the most dynamic markets where changes happen quickly. This past year presented a challenge for the global economy, and foreign currency exchange markets did not avoid the upheaval. As we optimistically start the new year, with hopes of a rebound and recovery, investors should look ahead for ongoing trends. Overall, the outlook is bullish. Some protectionist policies under Donald Trump will go away, strengthening many currencies. Economies are heading towards level they were at prior to the onset of the pandemic, and central bank policies are countering the impact of deflationary trends.
Key Takeaways:
- The Forex market will most likely see increased demand and investment or a bull market in 2021. This is driven by economic recovery, increased investor numbers, and US economic policy.
- US economic policy is steered by the President’s administration. The transition between administrations should not affect the positive outlook for the market.
- As long as the pandemic continues a downward trend on economic impact many areas of the economy should return to pre-pandemic levels.
“The global financial markets and the dollar were driven in 2018/19 by US President Donald Trump’s large tax cuts and protectionism, while 2020 has been dominated by Covid-19.”
Read more: https://www.europeanbusinessreview.com/how-will-the-forex-industry-change-in-2021/
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