Recently after the 2020 November US elections, the market bulls and bears have been on a rally of dorminating daily and weekly charts. A few weeks after November 3 when the election was held upto to 18th when I am writing this article, investors have either seen drastic drop or rise on Forex pairs or quotes after the election.
Therefore, what should investors expect as we head forward through this turbulent times of COVID-19 pandemic implications, Brexit deadlines and negotiations, Instabilities and Uncertainties in the Financial capital markets.
The US dollar may continue to weaken further as the US elections proceed and Donald Trump is planning to get out of White House as he welcomes President elect Joe Biden. The transfer of power might result to more weaknesses as major investors are pessimistic in President elect Joe Biden. This simply implies that Forex pairs like GBP/USD and EUR/USD might continue in bulls trends (rising trends) before they arrived at an overbought point. USD/CAD, USD/JPY, USD/CHF and others might continue to show bears trend (dropping or depreciating trends) before arriving at an oversold point.
Brexit deadlines and negotiations will impact the strength or weaknesses of the GBP and EUR for major currencies pairs. This might make investors to experience drastic drop or rise whenever anything concerning Brexit headlines is brought forth.
The COVID-19 second wave rise of cases in European countries and United States of America will contribute to sudden strengths or weaknesses of currency pairs. The success of COVID-19 vaccines being tested on patients might be an asset that will boost investors optimism which shall give more strength to a particular currency where pounds, euros, dollars, francs etc.
One take away for investors is "Be optimistic when the situation is tough and be pessimistic when the situation is easy", "Markets will always rise and fall, just position yourself in right places".
Stay safe Investors.
