Yes I think ensuing social distancing will result in some structural unemployment because of reduced need for staff in services sector.
Unfortunately, I can only say that coronavirus has greatly affected the economies of all countries, including trading.
Besides its worrying effects on human life, the novel strain of coronavirus (COVID-19) has the potential to significantly slow down not only the Chinese economy but also the global economy. China has become the central manufacturing hub of many global business operations. Any disruption of China’s output is expected to have repercussions elsewhere through regional and global value chains. Indeed, most recent data from China indicate a substantial decline in output.
IMF says the virus will impact the global economy by $2 trillion just this year. As long as hospitalizations increase and jobs are lost, trading will be impacted. I’m sure trading has already been affected even just recently, with lockdowns easing and people getting back to normal behavior. So less trading in general as they’re getting back outside.
As per the researchers, COVID-19 has increased unemployment level even more than during the peak of the great financial crisis. This has excessively increased in the demand for US dollar as a safe heaven. Though the current movements in demand of US dollar are more of driven by emotional quotient of the investors. This clearly doesn’t align in long run due to mass unemployment and increased government borrowing.
I believe that the vaccine by AZ will lead the race and the situation will be better by Jan-Feb 2021. So stay hopeful
which broker are you using?
I use EagleFX and IC Markets.
How are their spreads and execution?
It has already affected some markets
Which market are you focusing on?
it’s really unique situation, even World Wars haven’t led to such shut down. So it’s really hard to predict how hard the fall will be. The one thing I can say for sure - it will be really hard, so we should be ready. Analysts prognose that fall will be at least comparable to 2008-2009 crysis
The coronavirus has had a high impact on people’s lives as well as on the world market—especially small and medium-sized businesses. People’s demand for goods fell, people became more economical because of the fear of being quarantined again. The only thing that the coronavirus has barely touched is the cryptocurrency, and it is probably worth investing in now.
The impact on crypto due to corona virus is now being correlated with indices. In march, BTC fell at $4000, this was due to a lot of margin calls, and investors started liquidating BTC for cash to cover up their margin calls. Later BTC was able to attain $7000, high hopes are in market for its rise. Some may say that BTC is looking safer than other instruments, however its far from becoming a safe heaven like gold or silver. People will only start relying it as safe heaven on when the market feels a threat on the fiat system. If the fiat system is under pressure of being crippled, then for sure BTC or crypto’s will rise up as a strong heaven which is however a delusional scenario .
Good choices for me.
In terms of the impact I think it will continue to crush the US economy and accelerate the rise of China to the dominant world economy.
Thats a harsh truth. I really don’t want that to happen. but yes, the US economy is falling with every passing day. The recovery rate is much less than average.
Dollar so weak right now.
I don’t think that it had a major impact. Probably affected some individuals, but nothing significant
Well I am not sure what to think anymore. Many things have improved since most countries loosened up on their social distancing regulations and I see some reason for optimism but it still seems very erratic to me.
I guess it also depends on where you live though and how much your job/livelihood (for non-full-time traders) has been affected.