2015 was a great year for the market of foreign exchange. Rapid changes in financial policies have contributed to strong movements in major currencies and the US dollar has been the advanced performer as usual. In addition, the United States experienced the first rate hike ever over a decade, while the largest banks in the EU, Canada, China, New Zealand and Australia is relaxed. The greenback reached new heights, which in turn weakened the other major currencies. So how exactly does the Forex market will look like in the rest of the current year? Here take a look.
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The greatest risk that the foreign currency trading market will face in 2016 is the feedback loop of the policy and the Fed dollar. The first months were pretty easy going for US dollars. However, there is more that the stronger dollar and the recent rate hike in the United States. Here are the Best Forex signals for 2016.
Gaps in financial policies are likely to reduce in the second half of the year. As the Fed continues to cut accommodation, it will remain the only major interest rate central bank hike for most of the time this year. Keep in mind that the slow growth, the prices of low commodity and weak external demand would hit many economies this year. However, further easing will be quite high in most countries. The strength of the dollar will eventually decrease through this year.
Weak global demand and a strong dollar oil prices collapsed last year and prices would fall more than the US government lifted its ban of 40 years on all oil exports. On the other hand, China has again focused on domestic demand, which is a positive sign for all energy prices. Lifting inflation is the biggest challenge for many banks and the strong dollar would create deflationary pressure and prices will be lowered thereafter.
The diminishing returns of the stock market are another thing would happen in the latter part of the year. Easy money is finally ending and the strength of the dollar, combined with tight Fed policy, would take a significant share of corporate profits. So what should we expect from the foreign exchange market this 2016? At best, you can expect gains in a number in the earnings growth curve. Earnings and stocks will suffer more because of the slow global economic growth and lowered Community prices.
The policy will definitely put the economy in the shade of this year. With the referendum in the UK to come next, the refugee crisis continued in the euro area and the economic slowdown in Russia and of course the increased aggression of ISIS would surely affect the money markets. However, if you can stick the basics of Forex trading online, you can still make big profits. Take calculated risks and constant analysis of the silver market trends is the key to successful trading. Do not forget that this trend is the greatest friend of a Forex trader.
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