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Forex Market: Dollar Starts the Week in a Downward Direction

Forex: The Dollar begins the week in negative territory, despite the good performance of the currency.

In the financial markets, the key to success is knowing how to predict the future and act accordingly. However, when an unanticipated scenario arises, such as the coronavirus crisis, analysts have been faced with the difficult task of testing unprecedented projections.

And in this risky scenario, Forex market investors act in a risk-on-risk off investment environment.

How do we use Forex volatility to our advantage?

What causes these negative trends in the Forex market?
Fundamental analysis of the Forex market focuses on the behavior of global economies. Trend analysis has a main point of study. It focuses on the risks of investing in each upside and the negative trend of currency prices.

These ups and downs are affected by multiple factors within an ecosystem as vast and volatile as the foreign exchange market.

These ups and downs are also known as Bullish, a technical term used by Forex experts to refer to upward trends within the market.

In this case, the coronavirus is the protagonist in causing these trends today. This is why it plays an important role in the effects of change on the Forex market.

This global crisis has affected world economic patterns in ways never before studied by analysts of these economic trends.

Although, commonly in the Forex market, the beginning and end of the month are relevant dates when investing in currencies, because of the companies. And this could explain some of the behavior of the ratings at the beginning of each quarter.

So, the logic behind this trend lies in the decision making of large investment Immediate Edge institutions. These companies often decide to change their investments at these key dates.

These factors, coupled with the global health crisis, have made the foreign exchange market a „somewhat unpredictable“ environment.