Entering the Q2 2021 Market Outlook, the global forex market drivers remain similar to the previous quarter. Several factors continue to influence forex market movements in Q2.
 
Factors Driving the Market Outlook for Q2 2021
 
The first factor is COVID-19. As we know, the COVID-19 pandemic has become a global issue, affecting countries worldwide. This disease, which emerged in early 2020, has not only taken lives but also impacted many sectors. One of the effects has been seen in the forex market, where the pandemic has caused currency value fluctuations. Almost all sectors have been affected by currency value changes, leading to significant losses. In addition to COVID-19, the United States has outperformed most advanced economies since the beginning of the year and is expected to continue doing so throughout 2021. Key drivers include substantial fiscal stimulus, potential additional infrastructure spending, and accelerated vaccine rollouts. The rapid pace of vaccination programs has helped normalize mobility and should continue. This is the second factor that significantly impacts the global market. The market has responded to vaccine and stimulus news with higher bond yields, anticipating the Fed's actions to tighten monetary policy and raise interest rates. In mid-March, bond investors anticipated the Fed’s first rate hike by the end of 2022, with two further hikes in 2023. However, this may be premature, and we agree with the Federal Open Market Committee’s projections from mid-March that interest rate hikes are unlikely before the end of 2023. The third factor is vaccine development. In addition to the details mentioned above, $350 billion will be allocated to U.S. states, $130 billion for education, $49 billion for vaccine research and development, and $14 billion for vaccine distribution. This event will be an interesting discussion forum as the outlook will be presented by GIC Social Trade Masters from various communities and trading styles they specialize in. For traders, this is crucial as many factors affect the market's movements, including the COVID-19 pandemic, vaccines, and stimulus packages. Will the Q2 2021 Market Outlook affect the markets? Join the discussion directly with GIC Social Trade Masters at the Telegram Voice Chat Q2 2021 Forex Market Outlook event. You can also join the GICTrade Telegram community to ask fellow traders about their forex trading experiences. Follow GIC Instagram for webinar information and exciting prizes. Additionally, on GIC's YouTube channel, traders can learn trading for free!