As expected, 2017 was a turbulent year across the forex marketplace. The euro was up and down due to the ongoing Brexit negotiations and the U.S. dollar saw glimmers of hope during President Donald Trump’s first calendar year in office. Forex traders and investors are expecting better returns 2018, but more havoc could be on the way as well. Here is a peek at some of the expected forex trends next year.
U.S. Dollar On The Decline
One of the more alarming trends taking place in America in 2017 was the swift rise of interest rates. The quickest rising rates in the world could be in for even more of a hike next year – an expected climb of .75% is likely. New Zealand, Australian, and Canadian currencies continue to thrive while the U.S. dollar has simply been left behind. Most experts believe the strong performance internationally will only keep the dollar down throughout 2018.
If the U.S. dollar was to rise in the coming months, it would likely do so because the global economy was down. This very scenario occurred two years ago. Back in 2015, interest rates rose as traders were lured into investing on the dollar. Many wonder if the dollar will soar right at the beginning of the year thanks to Trump’s tax reform. But even if that is the case, most do not expect the dollar to keep up that pace throughout the entire year.
The rapid emergence and potential of bitcoin was perhaps the biggest development on the markets this past year. Cryptocurrencies across the board saw a flurry of success as 2017 came to a close. Bitcoin, Ethereum, and _Litecoin _all reached recent highs as the Christmas holiday approached. The biggest boom or bust sector in the market will certainly excite traders for years to come. Forex investors believe most cryptocurrencies can reach record levels in 2018.