Top forex Theme of 2016 – You Must Check Out
The year 2015 was a major financial boost for the companies in the financial market. The U.S dollar proved to be a better currency than any of the other currencies in the world. But as 2016 enters, there are major themes that are there to look forward to like; Trade-24
- A new low for Commodity prices in 2016
Strong dollar currency will have a lot of impact on the Forex and will cause the oil prices to fall this time of the year. A price below 30$ of an oil barrel is expected as by the end of the year; it can go up by 40$. As the ban on oil exports of the U.S is lifted, and sanctions and exports are lifted on Iran, commodities are seen at the bottom of the well. Inflation is also a major challenge central banks face and the major cause for disinflationary pressure is not currency but a lower currency.
- Low returns from the financial markets in 2016
Strong dollar rates, slow global growth, lower commodity prices, etc. could make the earnings increase for the investors in the financial market by a single digit figure. As a result, the company stocks will suffer, and the financial market can decline.
- Politics will dominate economics
With major political factors like the U.S election, UK referendum, etc. it is likely that the political factors will have a major impact on the currencies of the countries. , and show down with Russia are major political threats that can pose a major impact on Euro. Gaps of Monetary policies to widen in first half and will be narrowed in the second half.
- A new monetary phase due to Federal Reserve’s rate hike
The major thinking concern for the investors might be the increasing interest rates for more or not an entire year. Weak demand, low commodity rates and very slow increase in growth rate is going to affect economies deeply. The dominant trend from the previous years like the strong dollar rates and low commodity rates and the Federal Reserve should make an effort to stop widening the new monetary policies. But the speculation of increased interest rates might be significant to accelerate the past trend in 2016.