Money doesn’t just disappear into thin air

What to expect from the American currency? Why do some currencies get stronger, while others are plummeting? For how long will the bearish sentiment prevail in the market? Grand Capital experts have analyzed the list of the most unstable and strongest currencies in relation to the dollar during the current crisis.

Having settled above the level of 100, the US Dollar Index feels great amid the mood of panic in the stock exchanges and global economic recession.

Meanwhile, most currencies remain in the red in relation to the USD, many of them showed a 2–7% drop within one day. Only the Israeli shekel, Venezuelan bolívar, and Ghanian cedi demonstrate growth against the dollar despite the global crisis.

Money doesn’t just disappear into thin air. If there’s less of something in one place, it means that there becomes more of it in another. Today it looks like asset holders are simply moving to fiat money, not trusting the Federal Reserve with its dubious crisis control measures. Consequently, not only the national currencies are weakening, but at the same time the American dollar is getting much stronger, which, by the way, is not part of the US financial strategy.

The bearish sentiment is expected to remain dominant for some time, until either of the two factors disappears: the US-Russia-Saudi Arabia trade war subsides, and the oil price settles at $50 per barrel, or the coronavirus pandemic ends (or, at least, becomes negligible).

Right now the market situation is very precarious, which presents a great opportunity to make a profit. A start in this market race is possible with a standard trading account with a $100 deposit.

Of course, it’s too early to make any long-term predictions. The key role here is played by the psychology of each particular market player: whether they are able to control their greed and hold short positions in the assets with the dollar as the quoted currency.

For example, someone who placed a Buy order for a mere 1 lot of GBP/USD at 6AM (UTC) on Monday, March 16th, could get a profit of as much as $7,510 at 6PM (UTC) on Wednesday, March 18th. And this is from a 1-lot trade with a margin of $1,232 (the calculations were made using a 1:100 leverage).

One of our clients did just that, only with 5 lots (the margin was $6,160, the account balance at the time of placing the trade – $10,000), and made $38,055 in three trading days. You can try it yourself; it’s possible to maximize the profit even further, as Grand Capital offers a $40% deposit bonus for new traders.

A hint: following the behavior of all categories of instruments is much easier with the dynamic charts available in the section Trading instruments.

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^{*This material is for informational purposes only and doesn’t constitute a solicitation. Before starting to trade on currency exchange markets, please make sure that you understand the risks connected with the use of leverage and that you have a sufficient level of training.}