2016 has been a rather conservative year for currencies across the globe, with most brokers and traders sticking to major currency pairs. However, 2017 is shaping up to be a much more eventful year with the current changes in the US administration, fluctuations in global oil markets and political uncertainty in many parts of the globe. However, there are some currencies that should show solid growth this year and should be considered by any savvy investor. Here are list of top currencies in the world to watch in 2017.
Top 5 currencies in the world 2017
The tiny South East Asian country does a very good job at keeping its inflation low. Since gaining its independence in 1957, it has been the only developed country in the world not to default or have a full year with inflation above 20%. At the moment, its currency is tumbling as a result of Donald Trump’s win in the U.S. presidential election. It bears watching to see how quickly – or if – it can rebound.
Not being a part of the EU is an advantage for the Norwegian krone, mainly because it was shielded from the huge debt crisis much of the rest of Europe is experiencing at the moment. Norway is continuing to export its oil while maintaining a surplus, and with its low debt to GDP, the Krone is one of the safest currencies in Europe.
The South Korean manufacturing, electronics and automobiles sector made the country a force to be reckoned with, not only with Japan, but the U.S. as well. With a 3.8% current account surplus at this time, its currency is definitely something you should take note of if you are planning to invest in the forex market.
China will continues its growth in 2017, and enjoy a fairly stable economy, especially when compared with neighbouring countries. President-elect Trump has put forth different views and approaches concerning China – and it could have an effect on China’s economy. But the Republic of China has a great deal of foreign reserves with positive trade surpluses that may allow it to weather the uncertainty.
The Swiss franc used to be considered a safe haven, but as Swiss banks are forced into more disclosures, Singapore has become the new favorite, and its trading and banking industries are steadily growing. In 2015, Singapore’s current account surplus was 19.8% of GDP. With its increased banking role, Singapore benefits from the growth of Asian economies.
The foreign exchange market (forex) used to be the purview of large financial institutions and the wealthy. The internet and online trading completely changed that. Now, even the average investor can take advantage of forex investments using simple platforms such as MT4.
The increased number of players in currency markets has a direct incidence on volatility, which could explain why some obscure currency pairs might be trending out of the blue this year.
All investment strategies involve risk versus reward. The risk in forex trading can be managed if you do your homework and know what you are doing. These are just a few of the currencies to watch in the forex market that may provide more reward than risk in your portfolio.