2021 was an unusual year for the world’s economy. It was the first full year with a pandemic, and it was the year where Ever Given blocked the Suez Canal. Leaving behind a temporary blockage in the supply chain between Asia, Europe and the Middle East. The trade is still affected by it and has also made an impact on the Forex trading industry. This was something that could not be anticipated, but some things can. Let’s have a look at some of the factors that might drive the Forex market in 2022.
Inflation
In order to be able to understand which currency to invest your money in it is impossible not to consider the inflation. Many countries have experienced a big rise in consumer prices due to the problems with supply chains during the pandemic. The US has experienced a 30-year high and the UK a 10-year high in inflation rates.
It is expected that it will get back to a more normal level, but there is still a lot of uncertainty on how the national economies will cope with the new Omicron variant. As soon as we know the severity of the new variant, we will be able to forecast how the economy will be affected. Even though it is expected it will return to normal ways, it all comes down to how the future supply chains will be affected by Covid-19s future patterns.
The US Dollar
The American dollar has been on the rise in 2021 and most experts expects that to continue into 2022. The economy has had a good year and it has helped the price that the Fed has increased the interest rates. This means that the federal funds will be increased, leaving behind any uncertainty of a crash. With the belief that the economy is strong the dollar will also keep a strong position in comparison to other currencies. If you want to start trading US dollars you can find the best platforms for it right here: https://www.fxforex.com/en-gb/. Here you can also read an extensive guide on how to get started.
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Reports and Press Releases
Being part of the news flow when trading with Forex might be more important now than ever. In a time where changes to the national economies happen all the time due to curfews, restrictions and travel bans, it is fundamental.
The restrictions will affect the national economy and thereby the strength of the national currency. You should also take measures such as consumer confidence into consideration as it might tell you about the future spending pattern of the national population. Being able to analyse several factors and see them in a bigger picture is an important part of the trading industry. Make sure that you take advantage of it.
Remember to always read plenty of advice and stay up to date with trends and movements in the market. By doing that you will be able to decide, based on many factors. Use the tips available online, and you will be ready to invest in one of the many trends of 2022.