In uncertain times, people always look for certainty. The coronavirus of 2020 might have disrupted our daily lives but, amid the chaos, certain things remain a constant. Indeed, the one thing we know is that business will resume at some point. The question is, how? CEO of the Greater Rochester Chamber of Commerce, Bob Duffy, is in favor of a proactive approach. Face masks, hand washing, and social distancing are all ways he wants to keep people safe when Finger Lakes is open and trading again.
Having plans in place is important during a crisis. Not only do they prepare you for what lies ahead, they help settle any nerves and bring stability to an unstable situation. Of course, there are those that thrive on instability. While businesses across the region have been forced out of a normal routine due to coronavirus, that doesn’t mean business has stopped. Today, thanks to the internet, people have kept the wheels turning from home. Remote working has become the order of the day for many. But, on an even bigger scale, it’s been business as usual for the financial markets.
Business Never Sleeps, Even During a Pandemic
Even in the face of a global pandemic, traders never stop. If they did, that business really does stop and that’s bad for everyone. The activity of major financial markets has a trickledown effect that can help or hinder local businesses. If traders aren’t trading, share prices fall, and that hurts economies. That, in turn, filters down through the system to smaller businesses and individuals. Fortunately, the coronavirus crisis hasn’t stopped traders trading. These are the people that live off uncertainty and instability. This ethos is most apparent in the forex arena.
Since the outbreak, share prices on the New York Stock Exchange have tumbled. The Dow Jones crashed on March 23 to a value of 18,591.33. Just four weeks earlier it was trading above 29,200 points. With the world on pause, stocks in almost all major companies dropped. That was especially true of oil. In an unprecedented turn of events, supply outstripped demand and the price per barrel went negative. However, amidst the downswings, forex has offered a bastion of hope. Even with the US economy taking a hit, experts have called the dollar a “safe bet”.
Currency Trading is a Marker of Economic Health
That’s partly due to the strength of the nation and a sense that America will bounce back faster than most. However, it’s also due to the internal dynamics of forex trading. As a 24/7 market that everyone can access, from investment firms to individuals, FX trading has become a robust market. Indeed, the daily trading volume for forex is $5.3 trillion. In comparison, the New York Stock Exchange is a paltry $22.4 billion.
The benefits of this are twofold. Firstly, with online FX trading now possible, people have been able to remain active during the lockdown. In fact, even individuals trading on leverage from home have the luxury of trading via their laptops or mobiles. Secondly, on a macroscopic scale, the strength of the dollar helps determine the strength of the economy. If people are still trading USD, our currency remains strong. That, in turn, keeps the economy in a healthier state which, in the end, means all businesses have a better shot at survival.
There’s no doubt coronavirus has tested us. However, among the uncertainty there are glimmers of hope that suggest we can all come out this intact. Yes, we may be a little battered and bruised, but business will go on and we’ll survive.