Tag Archive: CAD

Best Currencies to Trade At 2015

dollar 2015

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.

  1. The Euro Forecast: The current Euro exchange rate is:
    1. 1 EUR= 0.7837 GBP and 1 GBP= 1.2770 EUR
    2. 1 EUR= 1.2516 USD
    3. 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.

  1. 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.
  2. 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.

  1. Canadian Dollar Forecast: The current CAD rates are:
    1. 1 GBP= 1.8124 CAD
    2. 1 USD= 1.1183 CAD
    3. 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.

  1. 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:
    1. NZD to USD is 0.27% low
    2. 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.

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What affects the CAD/JPY?

The Canadian Dollar (CAD) and Japanese Yen (JPY) are among the most stable currencies in the world. However, like with all currencies, they can be affected by a number of different factors. In fact, Canadian Dollar and Japanese Yen fluctuations are a normal part of the global economy. These currencies can be affected by rate changes, as well as supply and demand that can determine currency rates based on monetary flow. This article explains what affects the CAD/JPY.

Check out the current CAD/JPY Rate.

1. Interest rates

Interest rates can affect all currencies, including the Canadian Dollar and Japanese Yen. In fact, the interest rate of these currencies are incorporated into the price of the currency, or the predicted price at a point in the future. Currency rates can rise if interest rates are expected to rise, while currency rates can decrease if interest rates are expected to decrease. Interest rates have effects which influence currency. Currencies of economies that are expanding are favored, especially when it comes to supply and demand. However, a country that has a GDP that is increasing faster than the monetary base it has is increasing the value of its currency. This increase in the value of the currency can be seen in currency rates.

2. Supply and demand

Purchasing power can affect currency rates, and the economy may go through different cycles called ‘inflation’ and ‘recession’. During a recession, the ability of a country like Canada or Japan to purchase goods on the international market can decrease. However, during inflation, the purchasing power of a country increases, which then can increase the value of these currencies. Both Canada and Japan have high purchasing power, and are known for manufacturing many different products which are then exported around the world.

3. Global events

Global and national events can have an effect on a country’s currency. In some countries, war and other events can have a negative effect on their currency. However, as Canada and Japan are both politically stable countries, they are considered good places for businesses to invest. For example, the Canadian cities of Toronto and Montreal are economic powerhouses, and attract foreign investment from businesses around the world. In Japan, cities like Tokyo and Osaka are financial centers, also attracting global trade – which has a positive effect on the Japanese currency. Businesses and financial experts will often keep track of a country’s national policy and other events that may affect their currency rates. They will keep up to date by watching financial news networks, or by reading financial publications on a daily basis.

4. Economic fundamentals

Economic fundamentals can have an affect on the currency of a country. These can include data reports, changes in economic policy within that country, investments, levels of business, and interest rates. When this information is released, it could deter international companies from making investments within that country, and the value of that country’s currency could be affected in a negative way.

5. Debt

The amount of debt that a country owes can also have an effect on their currency. Currency values can be affected when the amount of debt that a country owes is high.

Best Currencies to Trade At 2015