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. OPEC’s influence on this year’s pandemic-affected FOREX trading market remains to get seen.
The Responsibility of OPEC
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 got chaired by HRH Prince Abdul Aziz Bin Salman of Saudi Arabia. Co-chaired by Mr Alexander Novak of the Russian Federation. Both are the Energy Ministers of their respective countries. Decisions were about how many million barrels per day to produce as well as production cuts.
Outcomes of the April OPEC Meetings
OPEC countries and Russia agreed to do everything they can to stabilize the market. Whatever decisions made at the upcoming meeting will influence oil prices later months. The organization of the 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 concerns.
Handling the Changes
FOREX is always affected by the oil production industry. In general, OPEC Meetings in particular, have a profound influence on the market. The long shadow of the COVID-19 pandemic will not get forgotten for a long time. But FOREX traders 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 to the situation with oil-producing countries. The New Zealand Dollar, the Canadian Dollar and the Austrian Dollar, among others.
Traders who deal in these currencies have every reason for concerns. Yet, they should not worry. Once the outcome of the OPEC meeting gets known. Because this info can help traders forecast the results. There’s a handy set of tools to help out in this situation. Forex traders using fundamental analysis can trade according to the acquired information.
Forex Trading Tools
Even without the influence of OPEC meetings, FOREX 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 are easy to do. In a market where every second matter, they save time and give reliable data about risk levels. By doing this, they 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 get used for free on various websites and offer invaluable support to FOREX traders.
Disclaimer: This article is not investment advice or an investment recommendation and should not be considered as such. The information above is not an invitation to trade and it does not guarantee or predict future performance. The investor is solely responsible for the risk of their decisions. The analysis and commentary presented do not include any consideration of your personal investment objectives, financial circumstances or needs.
Risk Warning: Our products are traded on margin and carry a high level of risk and it is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved.