Five Most Promising Currencies Used for Trading

January 6, 2015

The past years have been marked by uncertainty in the market and in the economy. This has a great effect in the world’s financial markets. With the continuing trend of uncertainty, several losses in some “strong” currencies have been noted (e.g. the euro). With the changing expectations, every foreign exchange investor should be aware of the up and coming currencies for the months to come. In this article, the results of research efforts are finally revealed in relation to the most promising currencies.

  • The US Dollar – This should not come as a surprise. The US dollar, despite the fluctuation in the US economy, remains as a foreign exchange trading stronghold because it is the central currency. Also, with the decline in other currencies, the US dollar found opportunities to grow and become more stable. Usually, when there are crisis along the Eurozone, the US dollar is, by default, the beneficiary.
  • The Japanese Yen –Despite the fact that this currency is facing a debt problem, the Japanese yen is still considered to be one of the best safe haven currencies. The ratio between debts to the Gross Domestic Product is pegged at 200 percent; but this is not a problem because most of the debts are committed internally because Japan’s economy has the capacity to fund its own debt. It has a consistent surplus of account since the year 1988.
  • The New Zealand Dollar – The banks of New Zealand, unlike Japan, heavily depends on the funding from other countries. This somewhat makes their economic condition a bit more difficult. Deleveraging is a practice common among the members of the private sector of New Zealand. It is also known for its close relationship with the markets that are just emerging in China. The growth rate of New Zealand’s GDP is at 2.5 percent per annum; this is supported by the rising level of spending of the consumers. In the years to come, interest rates are likely to increase. Also, the demand in the agricultural trade is likely to be stable.
  • The Mexican Peso – This currency, for quite a while, has continuously experienced weakening. But after 2011, it was seen to become more stable. It has actually performed well because of the country’s strong fundamentals. It has maintained low levels of deficit in the budget and public debt. The central bank imposes a non-intervention policy in the buying of US Dollars. This is their way of shielding the peso; in effect it has made the USD a bullish currency.
  • The Turkish Lira – Analysts say that lira is a bullish currency and it will remain like that for a while. In fact, it has outperformed some markets that are just emerging. The central bank of Turkey is effective in its role of protecting the lira against speculative attacks. In the near term, interest rates are high. There is a decline in the deficit of the currency.

These are just some of the currencies that are predicted to experience a rise in the months and years to come. Knowing these will help a lot in your career as a trader.

Content created by M Trading Forex broker, an Arabic Forex company from Egypt.