Best Currencies to Trade in The Future

Best Currencies to Trade in The Future

Submitted by adil on Thu, 06/05/2014 - 18:06

5 Currencies You Should Really Be Trading

Over the years, currencies faced major rifts in their price trends due to uncertain economic conditions of various countries. The markets swung in all directions as traders found it difficult to trade on a specific currency. Let us review what currencies you should trade now and in the future for best profit margins:

USD – The Global Currency:

USD is the standard currency for international trades. This portrays the credibility and stability of the currency. Take the example of Euro which is steadily declining every fiscal term. The European Union has found itself in deepened crisis in 2014 as more and more countries report failing economies and trade deficits. As a result Euro has absorbed consistent blows to its value over the last three years. And this trend continues till date, excluding rare occasions where Euro value rises due to intervention by EU. USD is the strongest currency in the G10 countries apart from the Japanese Yen and directly benefits from the plummeting economy in Europe. This trend is expected to follow in the near future as USD becomes more powerful in comparison to Euro.

Japanese Yen – The Eastern Force:

Japan has an enormous sovereign debt, but its 200% debt-to-GDP rate ensures the currency value remains stable. The debts incurred by the government were invested wisely and are now being repaid gradually. The government is also itself stable, meaning consistent financial policies which promote direct foreign investment strengthening the currency. This is why Japanese Yen is also one of the most popular currency among traders and will remain so in the future.

New Zealand Dollar – Rise in the power:

New Zealand’s economy relies heavily on foreign investment which is always not a healthy sign in financial terms and the country’s currency may depreciate in the short term. On the contrary, the private sector companies are working steadily to reduce their debts. And with close ties with China, New Zealand may see new heights of progress in the future. With increased consumer spending, annual GDP of 2.5%, improving agricultural trade, the currency is likely to strengthen in the coming years which may be supported with a hike in interest rates.

Turkish Lira – new power in the Euro-Asia:

Turkey is protected from the economic crisis in the Europe, the country is moving towards a deficit free era and better government policies are also helping Lira value to increase with a bullish trend. The currency is expected to outperform other emerging markets due to Turkish Central Bank’s policies of protecting its currency and keeping interest rates high for short-term. Analysts predict the Lira will keep on with the bullish trend with more stability.

Russian Ruble – the forgotten prodigy on the rise again:

This year, Russian leaders have expressed expansive intent with their current economic and military might. The value of Ruble will continue to rise as Russia gains more support from its allies and offers much better economic independence to investors.

Currencies like Canadian dollar, Euro are Pound sterling expected to lose their value. It is better to analyze currencies in pairs before trading, this way you will get an idea how currencies are affected by global market movements.