Being a trillion dollar industry, the forex market attracts hundreds and thousands of investors and traders from all over the world on a regular basis. Every market fluctuation and movement carries a significant impact on an individual’s trading activity. There have been many success stories, where people have been able to make millions in profits through forex trading. However, the market carries its own risks as well, and people also suffer grave losses at times.
The Forex market is around two centuries old, however, it has developed and modified across different eras. Different global political and social scenarios have had a long lasting impact on the forex market. Nonetheless, the market has significantly changed over the course of the last two decades. By becoming more globalized, and influenced by the waves of digitalization, the forex market started playing a huge impact on the global economic structure. More and more people are attracted to the market, as the available binary options broker for a US resident has made trading simpler and financially feasible.
External factors affecting Forex trading
Political developments, trade reports, GDP, international trading activities, regional poverty, and unemployment are a few external factors that impact forex currency trading. These factors tend to change regularly, and thus, the value of currencies also fluctuates because of them. Minor changes and fluctuations in the market can mean a lot for traders who have their money at stake. This is primarily the reason that people in developed countries like the US, look out for binary options broker for a US trader to minimize the risks involved.
A few major international events take the limelight in the global perspective, and hence, the market faces an irregular pattern in trading activities. The sanctions posed on Turkey by the ex-US President, Donald Trump after Turkey’s onslaught on Kurds was one such major global development. The US imposed fifty percent steel tariffs and pulled out of a $100 bn trade deal with Turkey. The stiffness between the relations of the two countries was over their contradictory stances on the Syrian war. While Trump threatened more sanctions, the Turkish lira (TRY) suffered a huge blow against the dollar in the foreign currency exchange market. This development disrupted the forex market immediately.
A similar development was observed during the US-China trade talks, as the Chinese Yuan shot up during the mid-October of last year. This was the time when both countries held high-level trade meetings. This development also impacted the Indian rupee, as its value suffered a downslide at that moment. All of these fluctuations carry a significant impact on the forex industry and prove how key global events and factors can move the forex market.
Relevance of cryptocurrency to the Forex market
Cryptocurrencies, like Bitcoin and Ethereum, have taken the world by storm since the last decade. Its increasing worth and growing popularity have forced many investors and trading sectors to consider opting for cryptocurrencies. It is being adopted as a mode of transaction and payment by many binary options broker for a US trader to promote ease of use and feasibility for individuals. Furthermore, the increasing trend of crypto trading has also influenced the forex market.
The global pandemic has shifted the interest of the business community towards forex trading in search of a more profitable trading mechanism. However, many cryptocurrencies have also experienced a high increase in worth which makes it difficult for new traders to opt from both. Nonetheless, the binary options broker for a US resident is available to assist and guide beginners in the field of forex.