In of January, usually summarizes the results of the past year and tries to predict the immediate outlook. The past year has been very difficult for the global economy and for the markets in general. The coronavirus pandemic has caused such damage to the economies of many countries, which can probably only be compared to the post-war period. The number of infections has already approached 90 million, and almost 2 million people have been killed by the disease. This year, the situation is expected to change for the better due to vaccinations of the population. In the case of markets, they have shown high volatility and often total unpredictability over the past year. It is difficult for investors in this situation to make the right decisions. However, experienced speculators were able to earn very good money on strong moves. Today I want to present to you my vision of possible developments in the main currency markets. Donald Trump has repeatedly said during the campaign that the dollar is too strong and should be weakened. In fact, this desire of the president was fulfilled in the final year of his presidency. The truth is that this happened under the influence of a negative event on a global scale – the coronavirus pandemic. Infusions into the U.S. economy of trillions of dollars have led to a weakening of the country’s currency. Dollar The U.S. began to lose popularity among investors. The emergence of huge sums of funds has triggered rising inflation and increased appetite for risky assets. The situation is unlikely to change dramatically in 2021. The dollar is likely to continue to fall. The likelihood of further weakening of the U.S. currency is increasing, given that the new President of the United States has announced his intention to pour several trillion dollars into the economy. On this basis, we can expect the eurusd pair to continue its upward trend in the coming year. Only the ECB, which does not like the strengthening of the European currency, can influence the dynamics of this market.
British pound
Weakening investor interest in the dollar contributes to the flow of funds to other popular currencies including the euro and the British pound. And if the euro is largely dependent on the dynamics of the US currency, the situation with regard to the pound seems rather uncertain. The exchange rate of the BRITISH currency will be depended on two main factors. In the final days of last year, Brussels and London managed to reach an agreement on Brexit. However, on a time-lapse approach, they only managed to agree on the main issues to maintain relatively normal trade relations after 1 January. At the same time, there are many unresolved problems related to the country’s exit from the EU. The complex epidemiological situation in the UK is an additional uncertainty. The recovery in the UK economy is difficult to predict. If the country manages to cope with the problems caused by Brexit and the pandemic, we can expect a break from the downward trend in the British pound, which has been going on for several years, and a significant strengthening of the country’s currency. However, this is unlikely in the short term. Inga Fedorova 09.01.2021 Record dollar and pound in 2021 first appeared magazine for forex traders forex-for-you.ru.