Whenever a war happens, the world economy suffers, and it is going the same way in the war between Ukraine and Russia. Forex has become even more volatile in the past few days with all major currencies taking a dip, be it USD, EUR, GBP, and so on. As long as the war is on, the market will remain more unpredictable than usual.
Some people say it’s a good time to trade, while others say the exact opposite. I’m going to avoid this highly volatile period because I am not in a condition to suffer losses. There are definitely better days ahead.
War in Ukraine has sparked a scramble for dollars https://www.cnn.com/2022/03/06/investing/stocks-week-ahead/index.html The US dollar serves as the backbone of the global economy and is considered the safest currency to hold. So in times of uncertainty, investors like to stock up. What's happening: The dollar rose to its highest level since spring 2020 last week as fears grew about how Russia's war in Ukraine would ricochet through the global economy and financial markets. One reason for its sharp rise: Investors decided they didn't want to hold euros anymore given Europe's proximity to the conflict. They dumped the bloc's common currency and bought dollars instead. "European markets are simply not attractive in this moment simply because of their geographical exposure to Ukraine and Russia," ING strategist Francesco Pesole told me. (More at above url)
In geopolitics tension like as war, usually, people or investors will look for the safe-haven asset, here safe-haven assets included safe-haven currency like as USD, JPY, CHF, the three currency considered as safe haven, USD considered as a safe-haven currency because still become reverse currency global, JPY becomes safe haven because Japan considered a country with a stable growth economy. in metal, there is Gold considered a safe-haven commodity. Work Hard, Travel Farther Understand How Leverage works Understand in Details and Get the Answers from the Experienced Forex Traders and FXOpen Forum Members. Learn Forex Trading with FXOpen Forum
With the current situation, it will undoubtedly affect commodities which indirectly affect currencies as well. There is a correlation between commodities and currency so majors pairs will experience higher volatility.
The war between Russia and Ukraine has affected every market, so how could forex remain untouched by its impact? Forex too felt the heat, as there were significant dips in the prices of all currencies, especially the ones related to the countries involved in this war. Wars are never good for economies and despite knowing that, countries go to war and force the entire world to suffer the consequences.
Yuan deposits replace dollar and euro in Russian banks 13 Mar, 2022 06:28 https://www.rt.com/business/551718-vtb-yuan-deposit-dollar-sanctions/
When the US and Europe embargo Russian economic. seems like a backfire for them, because Russia included major supplier energy on most countries, it is possible to increase inflation while China predicted will become the big power may replace the US as superpower country..