The United States is a recognized locomotive of the Forex market, since 2008 it has very sharply lost ground. The crisis, which began there with the non-repayment of mortgage loans and the collapse of the real estate market, led to the depreciation of assets, cash outflows, a sharp fall and destabilization of stock markets.
As reported by Bloomberg, since April 2009, the dollar has lost more than 10%. As a result, the deficit of this fiscal year amounted to 1.4 trillion. Dollars Such a major collapse was not more than 18 years.
Many world banks and financial centers began to doubt the strength of the American economy and are increasingly converting dollar reserves into euros and yen. At the same time, it is too early to talk about the end of the crisis.
This is confirmed by the annual statistics of the development of the financial system as assessed by the World Economic Forum. The United States left the first place, behind the UK and Australia. Russia, where the Forex market is actively developing, takes only 40th place.
However, you should not consider only the United States as the main problem for the Forex market. The modern world today is too globalized; the structure of world finance, cash flow, dependent on international relations and for a long time already practically does not recognize state borders.
So the world economic system is sensitive to any changes in the economy of any major player in the economic market. It cannot be said that the financial system and the largest banks in the UK feel better than the American or Australian ones, but all the major currencies in the past 2 years have experienced quite significant drops.
In the period from 2008 to 2010, there were so many important and truly global macroeconomic news that they could not but affect the global foreign exchange market, which very sensitively reacts even to minor problems in the financial system, because Forex is the largest market, whose daily volume reaches 3 trillion during the day.
Now imagine this huge circulation of money, and evaluate how much it depends on how the world’s largest players feel?
The main advantage of Forex during a crisis is that it does not have a specific trading place. Private investors and commercial banks are closely watching important economic news; they quickly receive all the necessary information from their dealing centers, so we can say with confidence: even during the crisis, this market has not lost in its volume, but only acquired it.
After all, all trade goes online; the money is deposited in the pockets of brokers and investors, and then again goes into circulation. Someone makes a profit, someone loses a loss. Many professional traders are waiting for a new wave of crisis, watching with interest the movements of currencies and trying to predict their prospects for the coming weeks and months.
Of course, with the growth of GDP and a decrease in unemployment in countries that have particularly badly been in crisis, the global foreign exchange market will increase even more in volume, primarily due to the inflow of private investment. Therefore, even in a crisis, the Forex market remains the largest and at the same time the most risky market of all.