Although 2018 may seem far off it actually isn’t that long until analysts will start looking at the predicted Forex trend for next year. Now that we are coming into the third quarter people are wondering how all of the political turmoil of 2017 will have an effect on the markets. Not only for Forex traders want to know what the future hold for their existing holdings but they also want to know where the best opportunities are going to lie in 2018. There are quite a few things that are still being speculated on – but traders and analysts have managed to identify some things already that look set to shake up the Forex market in 2018.
Bitcoin may be the trailblazer when it come to cryptocurrency – but there are now a lot more on the market. They can be volatile due to the decentralised nature of the currency but this only means larger returns for those willing to take risks. 2018 looks set to be a good year for certain cryptocurrencies that fall outside of the Bitcoin box.
Ethereum seems to be building up a large and stable population and in the last few months it has grown a massive 1000%. Due to the nature of it still being quite a new cryptocurrency there are no guarantees but there is a lot of innovation going into it at the moment so there is not reason it could not over take Bitcoin in the future.
The potential of Litecoin has started to be recognised in a big way over the last year or so. The fact that Litecoin pays double for the mining of each block than Bitcoin do may be a potential indicator that it is set to become worth a lot more in the coming months.Litecoin prices have been very volatile in the past but have risen and stabilised over the last few months which is a trend that looks set to continue well into 2018.
With so much fluctuation in the wake of Brexit, investors could be forgiven for thinking that Euro/GBP will never stabilise. While it bounced back more quickly than people thought it would after the announcement it has still faced challenges in the past few months. 2018 looks set to be the next time we see the Euro/GBP hit parity if information released by Morgan Stanley is anything to go by. It is entirely plausible that this will happen in 2018 unless we get a falling inflation in EZ or some developments within Brexit negotiations.
With many promises being made to invest in business and infrastructure from the Trump administration 2018 looks set to be the year that the wheels are actually being put into motion on these things. The current industry that is supporting the rise of the dollar is retail and this looks to be supported by the growing economy in 2018. Companies that have a large impact on American markets like Apple look set to ensure that the dollar is stronger than ever in 2018 by releasing new products in the last quarter of 2017.
Slower Growth in Chinese Markets
The latest Chinese growth bubble looks set to burst in 2018 and the back of 2017 is already feeling the effects of an economy growing more slowly than previous rates. This looks certain to have a detrimental effect on the Yen. One of the main challenges facing China at the moment is being over capacity and as of yet the Chinese government has not stepped in to rectify this. Because of this investors are waiting for the Chinese government to tighten regulations on lending which will make the current spurge in bankruptcies rise at an even higher rate than they did in 2017. As well as market speculation and regulation the actual downturn in credit growth is also set to have an impact on the Yen which will be felt well into the first few months of 2018. It remains to be seen if anything will be able to bolster this or mitigate any losses.