Hello potential traders, Crazy Invests has come back after for a long time. In recent days, there are a lot of discussions on the effect of the COVID-19 pandemic. The damage of the Corona pandemic makes the economy postponed. Especially the value of national currencies, which we trade every day on GG TRADE. However, there are other factors that made negative effects on currencies in the past. Let’s have a discovery with us in this post.
What are the currencies?
Currencies are one of the original factors of human history’s development. When people started to think about the more convenient ways to exchange items with each other, the currencies were born. Each country can have their own currencies or use mutual ones such as Europe. Although they are just some numbers that are written on paper, currencies can affect a country or even all over the world. There is no doubt about the power of money. But they are also affected by those factors.
The politics about Currencies
Politics is one of the most complex problems of a nation and its currency too. Because it can reflect the status of this country, all of the decisions of the government can make the currencies increase or decrease its value. In some countries that have complicated political situations, the coins also get damage from it. We can realize that the U.S government has to launch the stimulus to save the economy from the destruction of COVID19. And it also makes the US dollar down too. There fore, we can see that all of the policies of authorities relating to coins will determine whether the federal money can move forward or backward.
The War is also dangerous.
War is always scary. It not only drives people to the edge of perishing, but it also makes the world finance destroyed massively, and the currencies also include. Liban can be a typical example of what I said; it used to be a beautiful country with a stable value of money. However, everything has disappeared since the war came. It leads to the collapse of the economy. As a result, the Liban pound dropped straightly off, and Liban is still into the major crisis. What a terrible time!.
Disaster can threaten currencies
Disaster is the last thing Crazy Invests want to mention in the post. As you know, we can not predict precisely when and how it happens. Even if you can understand it will happen, it is tough to prevent it. And this is the scary point of disaster. During human development, some accidents changed the value of currencies in those countries. From the Tohoku tsunami in Japan make the JPY fail down 0,4% compared to USD to the earthquake in New Zealand, witnessing the Kiwi hit bottom in 2011( 74,55 cent).
Overall, the currencies are very powerful in many cases. But you also need to study which factors can affect the value of currencies to have wisdom strategies for your trading career. Hope you can gain success with us. See ya!.
More tutorials at https://crazyinvests.com/binary-options-tutorials-overall-of-binary-option/