Was the Foreign Exchange Market Affected by the Pandemic Crisis?

Abstract

In order to understand the impact of Covid-19 on different economies, this paper tries to underline the effects of the Covid-19 pandemic over some of the most traded currencies. For this purpose, a period of 3 years has been taken into consideration and the data was analyzed with the help of MetaTrader platform. The findings indicate a correlation between the pandemic and the volatility of the analyzed exchange rates. The results indicate that the observed pairs where affected negatively by the pandemic crisis. Thus, the effect of the pandemic is not only on a short time, but the effects will also be seen on a longer period of time.

Keywords

• covid-19
• pandemic
• forex market
• currency exchange