With the New Year around the corner, it is crucial for you to carefully consider your financial status and plan a strategy for further investments. The key to increasing profits and maintaining long term business gains is to try and find the strongest currency pair to trade in.
Currency Strength Forecast for 2015
While a few currencies such as the Dollar and the Euro have normally dominated the market, it is important to review the currency strengths regularly. As 2014 comes to a close we look at some of the major currency trends in the world so far. This allows us to make predictions for the coming year so that we can reap maximum financial benefits.
- The Euro Forecast: The current Euro exchange rate is:
- 1 EUR= 0.7837 GBP and 1 GBP= 1.2770 EUR
- 1 EUR= 1.2516 USD
- 1 EUR= 1.443 AUD
A forecast for 2015 suggests that the EUR/USD will decline to 1.25 by the year end. It also says that there will be a consistent fall although at a slower rate than at present. HSBC Holdings predict that the EUR/USD will be 1.19 by the end of 2015. Furthermore, if the US government ignores the push backs to increase the value of the USD, the downside may be significantly higher.
- Australian Dollar Prediction: The popular forecast suggests that the year 2015 will not be a positive one for those expecting a strong Australian currency. Economists expect the Australian GDP to fall by 2% in the coming year. At present the GBP/AUD exchange rate is trading at 1.8460 which is at a 0.43% decline.
- Pound Forecast: Currently, the GBP/USD exchange rate is below 1.6000 and can possibly fall even further to 1.550. Needless to say the GBP-Dollar trading seems to be at a back foot. Financial experts predict that this will decline further depending on the USD bulls.
The predictions of declining exchange strength have led many to believe that UK will join the European and Monetary Union (EMU). This has been further strengthened by the fact that the Bank of England has recently supported the prediction that the GDP/USD rates will suffer a decline.
- Canadian Dollar Forecast: The current CAD rates are:
- 1 GBP= 1.8124 CAD
- 1 USD= 1.1183 CAD
- 1 EUR= 1.4095 CAD
The Bank of Canada seems to foresee its currency value decreasing over the course of the coming year. This puts a bit of a pressure on the currency exchange rates. The possible decline has been credited to the fact that the US might reduce their purchase of Canadian assets. All in all, the currency does not look favourable for a secure investment.
- The New Zealand Dollar Predictions: The New Zealand Dollar (NZD) has faced substantial pressure in terms of exchange rates. The recent rates are as follows:
- NZD to USD is 0.27% low
- Pound to NZD is 0.22% high
As far as predictions for the coming year are concerned, financial experts have recommended that traders proceed with caution while working with the NZD.
These are the broad trends that analysts have predicted for the coming year. While the predictions are based on the current situation and the possible government foreign policies, traders are advised to keep an eye out for market changes. Since currency rates always have the possibility of fluctuation one must remember to research thoroughly before investing.
Are you ready to trade binary options? – learn how to choose a binary options broker