Virtual Leadership Roundtable Review: Foreign Exchange Volatility Will Continue

Source: Finance Magnates 2020-05-05

How long will market fluctuations last in the foreign exchange sector? According to the panelists of the "Huiheng.com Virtual Leader Roundtable" webinar, volatility will not only be limited to blockade measures, but also provide a boost to the foreign exchange market at least before the end of the year.

On Thursday, April 30, 2020, Huiheng held its first webinar-Virtual Leader Roundtable, in which four industry celebrities participated in the conference:

Andrew Edwards, CEO, Saxo Market, UK
Jan De Schepper, Chief Sales and Marketing Officer, Swissquote Bank
Andrew Ralich, founder and CEO of oneZero
Natallia Hunik, Chief Income Officer, Advanced Markets

In this group, many issues were discussed, but the focus of the webinar is on the impact of COVID-19 on the foreign exchange and CFD industry and businesses operating in this area.

Fluctuations will continue to exist

After being asked how long the recently increased volatility level lasted, the spokesperson pointed out that volatility will not disappear after the blockade measures are over. The recent volatility level has prompted brokers around the world to record trading volume, trading activity and account opening Record.

As Andrew Andrews, CEO of Saxo UK, emphasized, the longer the blockade measures last, the greater the damage to the global economy. Once we withdraw from the blockade, there will be a recovery period-government intervention, mergers and acquisitions, etc., and uncertainty will continue to exist.

"I ’m not sure if we will see the kind of knee-hopping volatility that occurs in March and April, but we are definitely in a new normal. Despite this uncertainty, the volatility will still be very Gao ... at least until the end of the year . I think that if the confinement lasts longer than June, then I think we will face a difficult period, a period of turmoil, which will last until next year. "

Andrew Ralich, CEO of oneZero, added: "I think everyone in the industry is praying for market volatility in 2020, we have spent very slow two years, and all of us are facing undulating volatility In the middle, we encountered a hurricane instead of a thunderstorm. "

Will the money manager return to the foreign exchange market?

In the past few years, the foreign exchange market has been in a period of low volatility, which gradually drives more and more hedge funds and fund managers to leave this field. However, now that the market volatility is indeed back, will we see fund managers returning?

Natallia Hunik, chief income officer of Advanced Markets, believes that this is indeed possible. She explained: "At present, we are witnessing unprecedented changes in the market, and volatility is back. In this environment, hedge funds and asset management companies usually flourish because of their volatility ..."

"Because of all the economic impact after the pandemic and all prices have affected other industries such as commodities, we do see more fund managers seeking to implement active foreign exchange strategies to take advantage of exchange rate changes."

How will trading activities change?

With the increase in volatility and increased trading activity, the number of new accounts opened by brokerages has increased significantly. But are the new accounts opened by these new entrants interested in the current trend of the foreign exchange market, or is it just that existing traders diversify their investment to multiple brokers?

According to Andrew Edwards, the increase in new accounts is due to a variety of factors:

Because of COVID-19, those who have never invested before have heard a lot of information about the trading market and have become interested in trading.

A trader who has been inactive for a period of time returns to the market after viewing the portfolio.

Jan De Schepper, chief sales and marketing officer of Swissquote Bank, confirmed this by outlining how the Swiss bank views former single-asset traders now venture into new assets. "When the crypto wave started in 2017, we were the first bank to allow crypto trading, and young traders opened accounts with us. Now, we see that these traders are entering the foreign exchange and stock fields."

Virtual Leadership Roundtable Review: Foreign Exchange Volatility Will Continue

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