4 currencies to watch in 2017.
4 currencies to watch in 2017.
Investors looking to cash in big in 2017 should shift their focus from the most traded currencies; the dollar, yen, sterling pound and euro to less known tradable currencies. Four currencies to trade in 2017 are the Swiss Franc, the Canadian dollar, the Australian dollar as well as the South African Rand. Market analysts predict that these currencies will remain stable despite the upheavals likely to be caused to the world’s economy by the populism trend emerging in the West. Let’s examine each currency in detail.
The Swiss Franc is one of the most stable currencies. This is partly because of the way the Swiss National Bank is governed. It is governed in conjunction with all the states in Switzerland. This ensures that all policies rolled out by the board ensure financial stability. In 2017, it is projected that the Franc will trade at around 1.05 to 1 dollar, up from 1.02 that it will close with this year. This relative stability has investors heading to Swiss banks to avoid the tumultuous economic times in Eurozone. A shift to Swiss Francs will also allow investors to circumvent the potential volatility that US markets will experience in the coming year.
The Canadian dollar’s value is hugely pegged on oil prices. Canada is a huge exporter of oil. Oil prices are expected to remain soft in 2017.The low prices will pull the Canadian dollar value lower. Also, the recent hike in US dollar strength is likely to weaken the Canadian dollar further. Market analysts also predict that an imminent Federal Reserve hike of interest rates will also impact the Canadian dollar unfavourably. It is estimated that the dollar will fall to a low of 70 cents to 1 dollar by end of 2017.
Market analysts predict greater stability for the Australian dollar in 2017 than in 2016. According to Barclays and Lloyds, reserve diversification is responsible for the trend. Reserve diversification is going to ensure that the dollar remains stable against the backdrop of changing global economic times. Also, Australia is likely to draw in more foreign investment in 2017 than in 2016. The inflow of foreign exchange is likely to increase foreign exchange reserves and therefore increase the value of the Australian dollar.
South African Rand
The Rand is the hardest of the four currencies to make predictions on. Its value is largely dependent on the economic status of western nations. For instance, the recent US election pushed the Rand to an all-time low. On the higher side, it is expected that it will trade at 13 to 1 dollar by end of 2017. Other analysts predict that it will trade at just over 16 for every 1 dollar. Goldman-Sachs predicts that export of commodities from South Africa due to an infrastructure boost in the US should give investors higher prices in 2017.
The Swiss Franc, Australian dollar, Canadian dollar and the South Africa Rand are four of the most tradable currencies in the world today. Their values will be shaped by many factors in 2017. Investors should look out for the performance of these four in the coming year.