Thread: If the world goes into recession, what happens to trading Forex?

Hello

This question has been in my mind for awhile now. Currently we see a certain amount of volatility in the a variety of currency pairs. During a recession, will we find more or less volatility when trading forex generally?

I guess the worst thing for us would be if there ends up being a lot of sideways motion rather than bullish or bearish trends.

This is a no talk, in case the US is currently undegoing a moderate recession, this doesn't signify that the whole world will go into a recession. Despite the rising cost of energy and food, many economies of the world would still be able to adapt to this. Besides many economies of the world are still presently sound regarding their economic performance. In the event the whole world will go into a recession then it'll be in a a matter of centuries ahead. In effect to forex trading that I cannot say.

Originally Posted by ;

this is a no conversation, if the US is currently undegoing a mild recession, this does not signify that the entire world will go to a recession. Despite the rising cost of food and energy, many economies of the planet would continue to have the ability to adapt to this. Besides many economies of the world continue to be currently sound in terms of their economic operation. In the event the entire world will go to a recession then it will be in a a matter of centuries to come. In effect to forex trading that I can't say.

Many thanks for your response.

I guess I was only curious to know what could happen in the worst case scenario But yeah, what you say sounds a lot more plausible now that I think about it.

In my view, the more uncertainty, the greater volatility. Forex is the final market to expire.

Originally Posted by ;

within my view, the more doubt, the more volatility. Forex is the last market to die.

I got to agree with this guy here. The more uncertain things are, the more volatility there is going to be. The only thing you really need to worry about from the currency market is whether the planet eventually loses faith in fiat currencies, which seems impossible from the world we are living in but is not so far-fetched in a worst-case scenario.

If the entire world goes into recession in precisely the exact same time, nothing will change because remeber, forex is all relative. Even though most of the nations on the planet can have horrible economies, if all of them descend in precisely the exact same rate, they will all be the exact same price compared to each other. Now, if only some of the countries fall, it would be a big help to us. We can always earn money on any price move in forex. The only way forex can be crushed is with a world currency, which probably isnt going to happen. So no need to worry. If the world goes into reccession, simply make some cash!

Based on the forex world currently, its reliable

I state forex never expire Until now we don't spend currency all over the world, so exactly what our expectation in case currency still exist? ,so I state FOREX never perish. Forex for life,

Originally Posted by ;

Hello

This question has been in my head for awhile today. Currently we see a certain amount of volatility in the various currency pairs. During a recession, will we see less or more volatility when trading forex generally?

I figure the worst thing for us is if there ends up being a lot of sideways motion instead of bullish or bearish trends.

I don't know what could occur in a recession but I really do know summertime isn't the best time for trending trading. It is more of a ranging trading.

Look at what happens on July 4th or Memorial day. There isn't much moving in any way. Every once and a while, price drops, turns, goes back up, and falls again. I look at summer rather the same as I look at vacations. Summer is only a long vacation.

If a individual goes back and looks at a chart, the patterns forming are no differant than they were when trading ever started using a chart. The best thing to do is utilize recent resistant and support levels to ascertain when to buy and sell.

The sooner you can look ahead and see if the rangebound trading will begin to start the better. There are so many people that can not endure a ranging market. I really like them. When I can see the range, I'll buy the bottoms and sell the shirts.

Ranging isn't much differant than trending. A trend goes down or up. Range goes up and down too, just sideways.

Originally Posted by ;

I do not understand what would happen in a recession but I really do understand summer time isn't the best time for trending trading. It is more of a ranging trading.

Consider what happens on July 4th or Memorial day. There is not much moving at all. Every once and a while, price drops, turns, goes back up, and falls again. I look at summertime kinda exactly the same as when I look at vacations. Summer is just a long vacation.

If a person goes back and looks at a chart, the patterns forming are not any differant than they were when trading started with a chart. The best thing to do is use resistant and support levels to find out when to buy and sell.

The more quickly you can look ahead and see when the rangebound trading will begin to start the better. There are many people that can not stand a ranging market. I love them. When I can see the range, I'll buy the bottoms and sell the tops.

Ranging is not much differant than trending. A trend goes up or down. Range extends up and down too, only sideways.

Thank you for the reply. This is interesting what you say. I'll think more about the