Forex 2019: current trends and future challenges by Asset Gates Broker
Forex market in 2019 remains one of the greatest options for investments, even despite the economic problems in the leading countries, according to the best experts of Asset Gates. Forex is the largest financial market in the world; its turnover is several times more than the turnover on the stock market, on the cryptocurrency market, and the commodity market together. The most important players on the Forex market are national and commercial banks, international financial institutes, and private investors.
Forex-2019 in numbers
It is almost impossible to calculate the proper trading volume on the Forex market. First, some deals stay in the shadow. It does not mean these deals are illegal, but the proper amounts are closed. According to Asset Gates, scam occurs with the small amounts. Typically, the transaction volume is closed when the national banks enter the market to weaken or to support the national currency. For example, the Bank of Japan uses currency interventions to stop the strengthening of the yen, which is harmful to the Japanese economy.
However, despite the impossibility to calculate the proper daily turnover, the minimum average daily turnover on the currency exchange market reached $6.6 billion. It means the total amount of daily transactions. The analytics in Assetgates broker believe this amount can be even higher and reach $10 billion daily.
The largest player in the Forex market is still the USA: in 2019 every fifth transaction of the Forex market was made by the U.S. representative. At the same time, the United Kingdom is the most essential market by the trading volume: the turnover of the famous London Stock Exchange makes approximately one-third of global turnover. However, it can be the result of a transparent transaction policy at the London market. Germany is still the largest European player: its share in global turnover makes approximately 10% of global Forex turnover. The private clients, like Asset Gates Broker, are the minority on the market.
USA: balancing on the crisis edge
Since last year, the leading international economists write about the upcoming financial and economic crisis in the USA. Really, there are several serious reasons to worry about this, starting from the overheated economy and up to the questionable reforms by Donald Trump cabinet.
So, it is no wonder that the greenback loses its positions against other main currencies. Recent political events, including the possible impeachment to President Trump, do not support the national currency, and vice versa.
However, analytics of the Asset Gates reviews the market and points out the fact that crisis is still not arriving. Probably, the reason is the pessimistic economic prognosis for other main countries: compared to other currencies, the U.S. dollar is still the reliable investment tool,
European Union: there is nothing more stable than stagnation
The stagnation of the European economy is the topic for debates for several years in a row. At the same time, the economic processes inside the European zone move in different directions. For example, the skyrocketing GDP growth in Poland overweight Spain, which loses its positions, and Greece, which did not recover to the stable growth after the previous crisis.
Hence, the position of the euro at the international financial market remains firm. Asset Gates broker highlights the moderate growth towards the US dollar is based on the greenback weakening but not the great economic success in Europe.
Chinese traders: too powerful to ignore
The presence of Chinese players on the global financial markets is one of the top focuses for 2019. On the one hand, China never plans to ignore the benefits of the financial market. Moreover, the Chinese government actively uses currency exchange mechanisms to keep the national currency on the flat level. On the other hand, the political situation in China has an impact on the economy, reports Assetgates Broker. The state authorities increase their control on the foreign traders, starting from the Australians. The Chinese government presses them out of the market. At the same time, the residents of China should report about all activities related to foreign currency.
The trade war between China and the USA makes the situation even worse. The Chinese government tries to stop the outflow of foreign capital from the country. According to the earliest analysis by Asset Gates, forex traders are among the first victims of the trade war. They cannot use the Hong Kong currency exchange in the way it was earlier. In recent times, Hong Kong played the role of the bottleneck, which allows Chinese capital to enter the free unregulated market. Hong Kong Stock Exchange is one of the most influential in the world, together with the markets of London and New York, and it shaped the rules and laws for all Asian players. However, the rebellions and political instability in Hong Kong prevents successful financial operations.
Nobody can ignore the Chinese market because of its power and volume. It seems that in the future the Chinese traders will find a new way to access the global market because the pressure is too high.
What are the prospects for traders in 2019
Asset Gates reviews the global forex market in 2019 and makes two main conclusions. First, there are problems and challenges for each of the leading countries and currencies that can result in volatility in the stock market.
Second, the existing check and balance system support the volatile international financial system in a stable position. It may sound weird but now is probably the best period to enter the currency exchange market, especially for traders who want to keep the low-risk level, even for the less profit.
Remember the forex exchange operation should be considered as the high-risk type of business. According to Asset Gates, Scam
Before starting your trade, please evaluate your experience, assets, capital, investment goals, and risk level. Take in mind you can lose all your money you decided to invest in forex. According to Asset Gates, scam is one of the worst issues the new trader can face. The experts recommend investing only the extra money you can afford to lose without the significant damage for you and your family. If you have any doubts about your investments in the forex, please contact the investment consulter.