Are you ready for 2018? The FX-Men sure are psyched! And since it was fun starting 2017 with crazy predictions, we decided to throw in even more wacky ideas for the year ahead. Check it out!
Make the Dollar Great Again
As Forex Gump mentioned in his dollar recap, the Greenback was the biggest loser last year. The TL;DR version is that 2017 was one big sell-the-news opportunity as the Fed’s tightening series and the “Trump effect” didn’t quite come up to scratch after being hyped up in late 2016.
But will the GOP’s tax plan make the dollar great again? Lower corporate taxes means that companies have more incentive to repatriate their moolah back to the motherland.
Even outdated studies say it could amount to as much as $2 trillion, yo! That’s a lot of potential investments that could fire up interest in dollar-denominated assets again. On the consumer side, more corporate investments can translate to JOBS! JOBS! JOBS! and keep consumer demand supported (and the Fed hawkish) for the year.
The Great ContrarYEN Trade
Last year the Fed, BOC and BOE all had rate hike parties and word around the hood is that the RBA and RBNZ will soon follow suit.
Will the Bank of Japan (BOJ) catch a case of FOMO and board the tightening train in 2018? As Forex Gump noted, Japan’s major indicators (except for inflation) have ticked higher last year, enough to convince Kuroda and his team to talk about an exit strategy.
If global inflation continues to creep higher, then the BOJ could lighten up their stimulus a bit. This would drive bulls to the pip streets and push the yen higher against its major counterparts. Now that’s a long shot worth considering!
Brexit Drama S03E41
The British pound has been on a roller coaster ride since Britain voted out of the EU in 2016, and 2018 promises to be just as exciting.
Now that Britain and the EU have finished the first round of negotiations, all eyes will be on round 2 where both parties will attempt to map out what happens to trade agreements after the exit. Unless negotiations deteriorate into a Black Mirror episode, then we’ll most likely see increased support for both the euro and the pound.
To the Moon (and back?) for Cryptos
There’s no question that 2017 was a fantastic year for Bitcoin, Ethereum, and other Altcoins. Alts like Ripple, IOTA, Litecoin, and others will especially be interesting to watch, as they’re more susceptible to pump and dump, FUD, and other crazy things Bitcoin had experienced in its early days.
Will cryptos extend their trips to the moon in 2018? Or will the good times roll…all the way to the ground? Nobody knows for sure, but we do know that it’s gonna be another interesting year for the young industry!
That’s it for the markets…for now. Let’s take a look the other FX-Men wacky predictions that made the cut this year:
1. Rise of the machines. Robots will continue their quest for world domination through smarthomes. Because smartphones are so 2008. Because typing on a keypad, reading your email, making coffee, or hitting the light switch is too much work.
2. More crypto-games. Why stop at Crypto Kitties and Crypto Fish when you can play around with cryptopuppies and cryptocockroach or even cryptofarming and cryptocastle? Time to reconnect with your Farmville and Mafia Wars buddies!
3. Royal family mania. Those who can’t get enough of The Crown will get a kick out of the Royal Wedding happening in May. However, it will play second fiddle to the arrival of William and Kate’s Royal Baby #3, who may or may not be named Champagne or Waynetta.
4. Tensions will escalate between Kim Jong-Un and the POTUS. Twitter will re-adjust its character limit to 500 characters so the Donald can make his point. And, if that doesn’t work, the “Rocket Man” will face off against the “Dotard” in a thumb-wrestling showdown that will last six days.
5. Jelena will tie the knot. Justin Bieber and Selena Gomez will break up one more time before they “secretly” get married in a beach and get matching tattoo rings. It will all be documented via Instastories, of course.
6. Robo-nation. Other countries will follow Saudi Arabia’s lead and grant citizenships to humanoid robots. We will all keep our eyes peeled for a cyborg assassin looking for Sarah Connor. Or a programmer named Bernard looking to introduce us to his “host” friends.
There ya have it, folks! These are some of our wacky, and completely ridiculous predictions for 2018, but we’re curious to find out what yours are.
What are your crazy and wacky predictions (both forex and non-forex) for 2018?