Forex Trends 2020

[DELMAR GUILLEN SOLORZANO 105]

During the past year the Forex currency market was marked by the change of direction of the monetary policy of the central banks, as well as by a high degree of uncertainty. However, the outlook at the end of the year gave us to understand that, in 2020, there were good latent opportunities for traders.

However, to get good results operating in this market, you must have the right skills and tools. For this reason, we put at your fingertips a FREE Forex course that will help you
to know in depth this market and also to identify its trends.

Forex trends
By way of synthesis, below we will show you the main trends that the Forex market had this year before the global impact of the Coronavirus. We will highlight what was the situation at the beginning of the year in the currency markets of Asia, the United States and Europe. Finally, we will analyze, in this time context, the main indices of the continent, given their influence on the rest of the markets.

United States
It is worth dwelling on the behavior of the US dollar since 2017; an upward trend motivated by the increase in interest rates from the United States Federal Reserve (FED). However, the announcement made at the beginning of 2019 about the cessation of the increase in these rates, together with the downward behavior
That manifested itself during the months of September and October, predicted that the currency would weaken in 2020. Which has been the case, for this and other more serious and obvious reasons.

It highlights the fact that the major US market indices had remained bullish. In addition, they were expected to have a similar behavior in the following months.

Asia
At the beginning of the year, specialists anticipated that conditions were conducive for the Japanese yen to position itself against the US dollar. It was one of the most widely used currencies internationally. It is also important to note that the trend of the USD / JPY currency pair was directional and that its movement could have generated opportunities.

Influence of the main European securities markets
The DAX30 index, which corresponds to the German stock market, reached its highest level in January 2018. However, after this peak, the index fell by more than 20%. This circumstance was justified, to a large extent, by the profit warnings issued by various companies in the automotive sector, including
Mercedes Benz, Volkswagen AG and BMW AG.

For its part, the FTSE100 remained bullish until the middle of 2019.

After this date, and until the beginning of 2020, its trend was downward. The forecasts for this index were already reserved at the beginning of the year, due to the uncertainty surrounding Brexit and the dependence on the materialization of pending agreements with the EU.

Europe
Regarding the euro, a bearish behavior was appreciated at the end of 2019, although it was expected to have a small rise and reach the figures registered at the beginning of the previous year. This trend was related to the reactivation of the quantitative easing program by
of the European Central Bank, which had among its objectives to face the economic slowdown.

This is the summary of the situation and predictions that were made at the end of 2019 and the beginning of 2020 for the markets and the main countries around the world, positioning Forex as a good candidate for 2020.

Of course, the real influence of the Coronavirus has greatly influenced these predictions that, we still do not know the turns that they can take between now and the end of the year and for the next 2021.

In any case, knowing the Forex trends will allow you to make an adequate trading strategy operating with a low level of risk. And, to facilitate your performance as a Forex trader, we highly recommend that you sign up for the next edition of BPT's free and online trading course with which you can develop the skills that this requires.
market.

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However, it can be very difficult for new traders to quickly identify the trend and complete the trading strategy. However, Forex trends can be learned, and most trend based strategies can be divided into three logical components. This is what every newcomer should learn first. The following are the basics of trend strategies, which are based on identifying trends, planning and identifying outputs.