Reviewing the Forex market in the first few months of 2020, it paints a clear picture of just how volatile the market has been since the start of the year. Naturally, as the outbreak in China went global, so too did its impact on the world economy.

China understandably took the first hit on the Forex market as news of the virus outbreak went worldwide. As a result, it wasn’t long before the Australian dollar began to be impacted too, as China is their largest trading partner. Also, taking into account that China’s renminbi is restricted to trade within limited ranges, the Australian dollar is often used as a proxy. However, many investors see it as a ‘risk currency’ when the markets are unstable – favoring other more stable currencies for trade deals. Coupled with reported COVID-19 cases in Australia in late January, these rates continued to be on the decline.

With death tolls in Italy now surpassing China’s, and other major countries like Spain, Germany and France also experiencing increased strain on health services and financial reserves in the fight against COVID-19, the EUR/USD is understandably on a downward trend since the start of the year.

Even though the European Central Bank (ECB) announced they would inject €750 billion into the economy to help manage the financial fallout from the corona virus on 12th March, this has done little to boost investors confidence who are favoring the US dollar as a more stable currency.

In the UK, the introduction of safety measures against the virus were slow in coming, which impacted confidence in sterling. Coupled with the Bank of England reducing the base interest rates further to 0.1%, their current account deficit and continued Brexit uncertainties, investors are selling off sterling, driving the value down as a result.

However, the one positive to take from this is that other countries within the EU are learning from previous mistakes in countries most affected by the corona virus in the early stages of the outbreak, introducing stricter coping strategies right away rather than waiting. It’s thought that this proactive approach could help with the recovery of the euro in the long-run, leaving them in a stronger position to make a quicker economic recovery.

Across the Atlantic, despite the United States’ initial reluctance to take early measures in the prevention of spreading COVID-19, investors are still readily buying US dollars. Some of this has to do with the Federal Reserve’s willingness to provide as much liquidity to the market as possible, as well as the dollar historically being seen as the ‘currency of last resort’, which is currently helping to preserve the dollar’s value to investors.

However, over the coming weeks and months, the realities of the coronavirus outbreak in the US will inevitably put a strain on their medical and economic stability and their slow reactions to the virus hitting US soil could mean they are also slow to recover. As with most countries hardest hit by the pandemic, economists are predicting that a recession in the United States is almost a given – which could hamper the recovery for the entire global economy.

Let’s have a look at the currencies that may be affected the most.

Over the last few months there has been a rush on the Japanese yen. Since Japan is considered to be the largest creditor nation, Japanese yen is called a financial haven currency, especially in comparison to the US dollar. In the times of the global crisis, investors were tend to choose Japanese yen as a more stable currency (again compared to more risky USD). Therefore, considering the current situation with the market and investor preferences, there is a chance the USD/JPY will simply fall in value.

As to the EUR/USD, it has experienced some sharp losses due to the demand for dollars. On the 12th of March, the European Central Bank (ECB) has shared its plans on the ways to fight the Corona virus impact on the economies. However, the investors and markets were not satisfied with the ECB decision to avoid the lowering interest rates. Recently, the US dollar has been favored by the markets for being the most liquid currency in the world and being also considered as a safe haven currency.

Corona virus is on everyone’s lips. And the biggest worry, apart from the potential illness affecting us or our families, is how we are going to stay financially afloat. Self-isolation and quarantine are devastating economies around the world. But it doesn’t mean that making money is impossible.

Traders and those who are interested in becoming traders, have the unique opportunity to make money now. Equipped with an internet connection, traders can continue as usual, while playing their role in preventing the spread of COVID-19 by staying in isolation. For those who don’t know, Forex is a decentralized financial market that has become the money-making playground for all sorts of traders. Anyone who is looking to make some extra money, can do so remotely, while trading Forex.

The great thing about Forex trading is that anyone can become quite successful at it and once the pandemic passes, you can still enjoy the financial rewards of this style of trading.

If, while you are isolating and you want to trade with international currencies, there are a few ways that you can go about it.

Open your trading account now

So during the time of Covid 19, Traders can easily earn money by trading the currencies market and implementing the following strategies:

Continue trading as usual

If this global disaster does not affect any of your trade-in in the Forex market. One can carry on the trade as usual but if it affecting then it can be dangerous as the response in the currency market is chaotic and unpredictable.

Go for Safe currency buying

The trader trading in the currency market should buy a safe currency like the Japanese Yen or the Swiss France currency as a refuge assets during this pandemic time. But before buying these currencies careful analysis should be done as both Japan and Switzerland are also being affected by this COVID-19 pandemic.

Sell currencies of pandemic Countries

A trader should start selling currencies of highly COVID 19 effected countries to be on the safer side. As the countries which are hit heavily because of this pandemic may lead to a loss so start selling them and buy currencies of safe countries.