It’s that time of the year, forex friends! The FX-Men did an eerily fantastic job at calling trends for 2016, so we decided to throw in even more wacky ideas for the year ahead. Check it out!
Year of the dollar…again?
The Fed is set to raise its interest rates multiple times in 2017, the U.S. equities markets is flirting with record highs, and U.S. incoming Prez. Trump is promising yuuuuuge fiscal stimulus injections. Is it any wonder that the Greenback is the top bet for many traders going into the year?
Don’t expect a smooth ride on the way to the sky, though. Just ask SpaceX. Remember that much of the optimism is based on Trumponomics and the Fed’s hawkishness. And as we know, the Fed can be a tad bit too hawkish with their end-of-year forecasts. The euphoria of Trumponomics could also fade especially the timelines are hit with unexpected push back from Congress despite Republican control.
Strong rally or not, you can bet your next pips that the dollar will continue to be one of the most closely-watched currencies this year. Make sure you stick around so you won’t miss any monster move!
New lows for EUR and GBP
Family dramas don’t end with the filing for divorce and Brexit is no exception. The euro zone’s perpetual banking crisis, for example, would have more impact on the euro now that the option of leaving the EU is now more realistic than it was a year ago.
Europe’s policymaking scene could also rock the common currency this year. Imagine if an early election in Italy puts in power the 5 Star Movement or some other eurosceptic party, while Le Pen’s Front National wins in France and Alternative for Germany ousts Merkel from power. The heads of these anti-EU parties could form the first Anti-EU triumvirate and cause more uncertainty in the markets!
The U.K. is also not without its headaches. Already Theresa May’s Brexit schedule is threatened by legal challenges that could prolong its bitter divorce with the EU. Unless May and the EU officials hammer out details soon, the continued uncertainty will likely give Mark Carney (and GBP traders) jitters in the months to come.
Oil will breach the $100/barrel mark
Thanks to the Organization of Petroleum Exporting Countries (OPEC) finally marshalling its troops and non-OPEC bigwigs like Russia making it their New Year’s resolution to cut their production, oil has found the momentum it needs to stay above its 2016 lows.
There are many reasons why oil prices will stay low, of course, but given how OPEC and Russia have handled their oil-bullish rhetoric all through 2016 and the possible supply disruptions during a civil war, the odds are looking favorable for more oil price rallies. Somebody call the inflation junkies!
That’s it for the markets…for now. Let’s take a look the FX-Men’s wacky predictions that made the cut this year:
1. We’ll see the first Snapchat story from space. If we’re lucky, we’ll see aliens. If we’re REALLY lucky, we’ll see aliens using the dog filter.
2. Tay-tay will come out with a new album. Swifties will come out of the woodwork and rejoice when Taylor introduces her new beau later in the year. It’s a long-term relationship that lasts more than six months.
3. President Trump will have a Twitter war with…Kanye. Kanye will make a diss track about the Donald, and the Donald will have Kanye (and maybe the Kardashians) deported to the Republic of Kim, Kanye, and the Kardashians.
4. Rise of “non-traditional” media. Traditional news outlets will be replaced by more popular options like The Onion, 21 Jump Street Journal, and Harambe Today.
5. Smart home tech will become more popular. Because everybody secretly wants to be Iron Man. Thanks to Zuck, we’re now a few steps closer to having our own Jarvis. One small step for man, one giant leap for literally ordering pizza without lifting a finger.
6. Another celebrity couple will head to Splitsville. Please don’t let it be John Legend and Chrissy Teigen. Or Ryan Reynolds and Blake Lively. Or Miley and Liam.
There ya have it, folks! These are some of our wacky, and completely ridiculous predictions for 2017, but we’re curious to find out your own forex or pop culture predictions.
Leave your thoughts in the comment boxes below and check out our poll!