Whether your interest lies in playing the Forex market, or you’re simply planning an overseas trip for the coming year, it’s worth your while to spend some time learning what global currency exchange is doing during these tumultuous times. The upheaval caused by the dramatic and sudden decline of the American economic situation had major ramifications which have echoed across the world, and most of us are feeling the impact.
If you’re planning an overseas trip and you’re negotiable on your destination, then you’re most likely constantly checking the various exchange rates, in the hope of selecting the most stable and best possible deal, but it’s been a trial to maintain a track of and more so to identify any discernible pattern. If you’re playing the Forex market, then you need even more assurance on the stability of your approach and investments, but this is difficult to come by.
Below I’ve listed some of the most popular opinions and estimations which are shared on the web, but please bear in mind that these are only the opinions of market players and government officials, certainty is never a possibility.
The Asian market has been suffering along with other key players, and over the next few months, it’s predicted that the various currencies of the region will continue to devalue. On the upside, however, respected analysts have stated that they expect the region to begin a recovery early next year, leading to a strengthening of currencies. This upturn is attributed largely to an anticipated increase in import demands.
As a major global player they, perhaps, deserve an entry independent of the Asian one. China’s overseas sales climbed 17.1 percent in September 2011, likely due to the low cost of their exports at a time when everyone is struggling to survive. The country currently has 3.2 trillion dollars held in reserve, and has shown impressive resiliency since the 2008 depression hit. The smart money is most likely on the Chinese, in terms of a good investment.
The Australian dollar has always been a strong contender and a very stable forex trade commodity, but certainly took a hit of its own in recent times. Growth may have been slowed by the 2008 depression, but the Australian dollar fared better than most due to its strong export policy, consisting in large part, of raw materials which are always required by the global market. It seems that Australia is the master of another of the few currencies which have remained relatively stable and could see healthy growth in the coming year.
US and Europe
Needless to say, North America and the majority of Europe (especially England and Ireland) were savagely injured due to their investments in the USA. When the credit system of the US collapsed, the impact was widespread indeed and Ireland, for one, has suffered a chain reaction, the repercussions of which are still not fully clear. Although both the US dollar and the Euro have seemingly stabilized, this has been an opportunity for emerging currencies to gain trade-able strength.
Warren Kings writes on many different topics. Have a look at his latest articles on mt4 demo account and metatrader 4.
- Learning About Currency Trading Taxation (2011taxes.org)