Forex, also known as the foreign exchange market, is the world’s largest financial market with a daily turnover of over $6 trillion. In this market, traders buy and sell different currencies based on their value and economic performance. With the ongoing COVID-19 pandemic, global economic instability and geopolitical tensions, traders are looking to identify the best currencies to invest in. So, what should you buy now in Forex?
Firstly, the US dollar (USD) remains a safe-haven currency for investors. Despite the recent political turmoil and social unrest, the USD remains the world’s reserve currency and is still the most traded currency in the Forex market. The US economy is showing signs of recovery, with the Federal Reserve keeping interest rates low and increasing fiscal stimulus packages. With the continued uncertainty, the USD is likely to remain a stable investment option.
Secondly, the euro (EUR) has also shown strength in recent months. The European Central Bank has implemented various measures to support the European economy, including quantitative easing and interest rate cuts. The EUR has also benefited from the European Union’s €750 billion recovery fund, which aims to support member states’ economies affected by the pandemic. With the EU showing signs of recovery, the EUR is expected to remain a strong currency in the Forex market.
Thirdly, the Japanese yen (JPY) is another safe-haven currency that has shown strength in uncertain times. The Bank of Japan has implemented various measures to support the Japanese economy, including quantitative easing and zero-interest rates. The JPY has also benefited from the country’s high savings rate and current account surplus. With the ongoing global uncertainty and geopolitical tensions, the JPY is expected to remain a stable currency in the Forex market.
Fourthly, the Swiss franc (CHF) is also a safe-haven currency that has shown strength in uncertain times. The Swiss National Bank has implemented various measures to support the Swiss economy, including negative interest rates and currency interventions. The CHF has also benefited from Switzerland’s stable political environment and high-quality infrastructure. With the ongoing global uncertainty and geopolitical tensions, the CHF is expected to remain a strong currency in the Forex market.
Finally, the Australian dollar (AUD) has also shown strength in recent months. The Reserve Bank of Australia has implemented various measures to support the Australian economy, including quantitative easing and interest rate cuts. The AUD has also benefited from China’s economic recovery, as Australia is a major exporter to China. With the ongoing global recovery and China’s economic growth, the AUD is expected to remain a strong currency in the Forex market.
In conclusion, Forex traders should consider investing in safe-haven currencies such as the USD, EUR, JPY, CHF, and AUD during uncertain times. These currencies have shown strength in recent months and are expected to remain stable in the Forex market due to their stable political environment, high-quality infrastructure, and ongoing economic recovery. However, traders should always conduct thorough research and analysis before making any investment decisions in the Forex market.
