Currencies To Watch Out For This Year
The foreign currency market is an investment option that is readily available to investors of all calibre. As currencies get traded 24 hours a day, individuals get opportunities to make money by speculating on price fluctuations. Trading in currencies is possible for anyone with the desire and some money. CMC Markets and other online trading platforms have made it possible to trade even with limited knowledge of the market, especially with the industry data and research provided by online brokerages. With the right tools for analyses, you can tell which currencies have been doing well and anticipate future performances. Learning about the currencies with exciting prospects in 2017 gives you an excellent place to start trading.
2016 may not have been interesting for currencies, which meant that traders restricted most of their investments to the major pairs, but 2017 is poised to be different. Although the greenback has been on an upward trend since last year due to factors such as a new administration and a hike in the interest rates, investors can look at other options.
South African Rand
It has always been hard to make predictions about this currency, but currently, it has been quite stable. The value of the Rand mainly depends on the economic climate in western markets. For instance, during the U.S. elections, the currency fell to an all-time low. However, with the numerous changes in policy in the U.S and other European countries, the Rand is set to recover steadily. The increased infrastructure promised by President Trump will improve export of goods from South Africa, which will boost the currency. Experts speculate that it will reach 13 to 16 for every dollar.
The biggest thing going for the Krone is that it is not a part of the EU. A majority of nations in Europe has been suffering from the massive debt crisis in the region, but Norway is shielded. There is also the fact that Norway is still exporting its oil while maintaining a healthy surplus and a low debt to GDP, which makes the currency a safe bet for traders.
Singapore has become the preferred alternative for wealthy individuals who need a safe haven for their assets. Switzerland used to be the go-to place, but that is changing slowly as banking regulations force Swiss banks into disclosing client information. Due to the growth of Singapore’s banking sector, the currency has become a favourite to watch.
Even with the competition that the banking industry in Switzerland is getting from Asian economies, it remains to be one of the most stable in the world. One reason for this fact is that all the states in Switzerland govern the Swiss National Bank, and that provides checks and balances to maintain stability in the sector. At the close of 2016, the franc traded at 1.02 to a dollar, but that value is expected to go up to 1.05. The uncertainties plaguing Eurozone are some of the reasons investors have for switching to Swiss banks. There is also the anticipated volatility in U.S. markets in the wake of Trump’s protectionist policies.
The inflation rates in Malaysia have always been consistently low, never above 20%, since it gained independence. Also, it has never defaulted on its loan (the only country in the world). Although the Ringgit has been suffering since the new U.S president won, investors are waiting to see how and when it rebounds.
Oil is Canada’s biggest export; and therefore, its currency largely depends on the commodity’s prices. So, it matters how oil holds up in the market in 2017 although it’s predicted to maintain the low value. The strong U.S. dollar is another reason the Canadian dollar is losing traction. Impending rate hikes from the Federal Reserve will also push the CAD lower. Some analysts forecast that the Canadian dollar may hit 70 cents to the U.S dollar by the end of 2017.
Investors are very concerned about the trends in the West where populism seems to be making a comeback. The apparent political turmoil in several European nations has been unfavourable for many markets, which has affected different currencies. Asian economies are also promising some great chances that investors can capitalise on. Nothing may be certain yet about what the year will bring but keeping an eye on the above currencies is a start.