All eyes will be on the upcoming OPEC meeting on the 10th June 2020. OPEC Meetings are always a matter of great interest, especially to the FOREX trading community. The outcome of OPEC Meetings can influence the course of FOREX trading for the months to follow. This year, the coronavirus pandemic has had a devastating effect on the world economy. So OPEC’s influence on this year’s pandemic-affected FOREX trading market remains to be seen.
The Responsibility of OPEC
On OPEC’s shoulders rests the responsibility for the organization of the petroleum industry. That’s because when it comes to petroleum exporting countries, OPEC represents a majority of them. Contrary to the assumption of many, it doesn’t consist only of Arabic countries.
No doubt, the oil producing Arabic nations have a significant role to play in this organization, but countries like Ecuador and Nigeria also have a presence. From Iran to Angola and Venezuela to Congo, every member country has an input. Together these countries decide on the oil policies of its member countries.
There’s no doubt that the OPEC policies have an impact on oil prices worldwide. The energy ministers of the OPEC member countries meet regularly. OPEC member countries have a strong bond.
OPEC Meeting April 2020
Earlier this year there was an OPEC and non-OPEC ministerial meeting via videoconferencing. It consisted of energy ministers from the OPEC countries and Russia. The meeting was chaired by HRH Prince Abdul Aziz Bin Salman of Saudi Arabia and co-chaired by Mr Alexander Novak of the Russian Federation. Both are the Energy Ministers of their respective countries. Decisions got taken regarding how many million barrels per day to produce as well as production cuts.
Outcomes of the April OPEC Meetings
All OPEC member countries and Russia agreed to do everything possible to stabilize the oil market. Whatever decisions get taken at the upcoming meeting will influence oil prices for subsequent months. The organization of the petroleum industry is always affected by the outcome of OPEC Meetings. Of all the energy markets, the oil market is the most influential, at least where the FOREX market is concerned.
Handling the Changes
The course of the oil production industry in general and OPEC Meetings, in particular, have a profound influence on the FOREX market. The long shadow of the COVID-19 pandemic will not get forgotten for a long time to come. But FOREX traders everywhere are keen to see the results of the June OPEC meeting. Will the oil producing countries decide to scale back, since a recession get predicted? Or will they maintain current levels of production? If they do, how will this affect international currencies?
Help is at Hand
Traders can become very concerned about the outcomes of OPEC meetings. Certain currencies are vulnerable regarding the situation with oil producing countries include the New Zealand Dollar, the Canadian Dollar and the Austrian Dollar.
Traders who deal in these currencies have every reason to be concerned. However, they should not worry. Once the outcome of any OPEC meeting is known, the knowledge acquired can be helpful to traders in forecasting the long term results. There’s a handy set of tools to help out in this situation, and Forex traders using fundamental analysis can trade according to the acquired information.
Forex Trading Tools
Even without the influence of OPEC meetings, the FOREX market is inconsistent and not for the timid. It’s good to know there are some tools to help traders to navigate their way in this unpredictable market. These calculations can get done by hand but in a market where every second matter, they save time and give reliable information about risk levels to help traders make informed decisions.
- Pip Value Calculator: The PIP value is different for each currency pair. This is the tool to work it out
- Profit/Loss Calculator: This works out the reward/risk ratio of a trade before trading
- Lot Size Calculator: This works out the lot size of a particular currency pair
- Stop Loss Calculator: This tells traders when to forsake a non-viable deal, keeping some warning signs in view.
- Forex Margin Calculator: Before trading, you must know how much money you’ll need to invest. Given your circumstances and trading currencies, calculate how much to risk without losing it all.
These tools are available online. They can be used for free on various websites and offer invaluable support to FOREX traders.