In the wake of the global pandemic and much unrest in multiple other aspects of life as we know it, the world has seemingly tipped upside down as of late. We have seen a lot of instability and unrest. Even now, the world continues to grapple, trying to find its footing in these still uncertain times.
Think of the FOREX (i.e. foreign exchange market) market and its unstable position right now, for instance. This is a market that is quite literally designed and intended to be a fully functioning gateway for currency exchange around the globe. The market is quite literally always moving, which of course means that it is near impossible to acutely figure out how the market is going to continue evolving and shifting. Considering the fact that the foreign exchange market is always going through its own ebbs and flows, it should come as no surprise that the currencies that are traded in this global exchange market also go through their own ebbs and flows in value and dominant positions in the said market.
Think of the Australian dollar, for instance. We have seen a lot of inconsistency with the Australian dollar in the last year, none of which has been improved or otherwise helped by the fact that the world has been dealing with catastrophic events that have set the entire planet on a decidedly different trajectory. And then, seemingly tides began to turn. Earlier this week, the Australian dollar hit its highest high in nearly a year (since July of 2019, to be exact), trading at 70.41 US cents in the foreign exchange market. This is a significant difference from the dollar’s value in March, where it was trading at 55.10 US cents. Even so, this is a cause for momentary celebration but not permanent celebration.
The current position of strength that the Australian dollar is showcasing in the foreign exchange market is a position that has been given great consideration and pull forward, onward, and upward over the last seven days. And while this is a point to be proud of and to pay attention to, it is also incredibly important that we remember that the position of the dollar might be strong today, however it can all change in an instant. The power of the foreign exchange market is that it is never certain - and neither is the value of any currency around the globe that operates, flourishes, and thrives within that international trading market.
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