In the midst of the COVID-19 pandemic, the global economy has been experiencing a crisis that’s not nearing an end any time soon. It has been challenging for businesses to thrive amidst the crisis.
In addition to that, sales, profits, debt management, and payroll are severely affected.
There are also nationwide lockdowns in different countries with a huge number of COVID-19 cases.
There are interruptions in the supply leaving new and experienced traders trying to adjust to the currency trading strategies that they have to employ in the market.
Since there’s high volatility everywhere, traders are having a tough time predicting the movement of the market. Opening positions at the right time, determining the economic news that they should believe and how to act upon it.
What’s making it worse is the second wave of infections after a country lowers its guard.
The effect of COVID-19 is unimaginable. But traders cannot sit still and watch their trades go sour.
Traders need to find a way out of this situation so they can still become profitable amidst the situation. Check out some of the most notable strategies that you can use to cope with the effects of the pandemic.
Filtering The News
Unfortunately, there are still people who want to take advantage of the situation. There is a lot of fake news related to the COVID-19 pandemic.
Even before the pandemic, we have heard of the power of fake news in creating chaos and doubts among readers.
However, traders must be very careful with this type of news and it is also important to know that there is news that matters above others.
Paying Attention To The Economic Engines
Economic engines are the ones that support the overall economic well-being. For professional traders, they knew very much that they tend to monitor their economic currency trading calendar frequently. Even before the start of the COVID-19 crisis.
There are indicators that must be kept an eye on since this will be your guiding point when opening and closing a trade.
Oil Storage Levels – as the key factor that concerns the world economy. The U.S. is making weekly updates on the oil storage levels. Such news is very important since the U.S is considered the largest oil consumer in the world and next is China.
If the inventory states that there is an increasing number or the number stays the same, that means that U.S consumer and industrial machine is not improving and everything gets affected.
Manufacturing Data of China – U.S. is buying it while China is making it. But China needs several resources to produce products but they will also refuse to produce if the U.S won’t be buying it.
Their relationship is quite symbolic but it is most likely that China will be the one to restart its economic engine first before the United States does.
U.S Employment Data – the lack of employment of millions of Americans affects the world economy. If Americans buy less, it means that the world is making less.