How 2017 Will Be for the US Dollar
It is important to monitor the strength of the currency to ensure success in online stock trading. You need to ensure you keep tabs on it. Now that 2016 is coming to a close and 2017 will soon be upon us, it’s time to consider how strong the US dollar will be next year.
Here are some of the conditions that must be met for the dollar to be strong in 2017. As of now, with the holidays approaching, the US dollar is performing quite inconsistently. It sometimes loses against the euro and other major currencies while gaining on the sterling and other currencies. In spite of these movements, you find more profit taking in the dollar than new positioning. With the markets in holiday mode, there could some more volatility and action from the 27thtill the end of the year.
The Federal Reserve is looking to raise its interest rates thrice in 2017. That should help the US dollar except for the risk of the strong dollar adversely affecting corporate earnings. Trump should also put in the required stimulus.
So what will be the results of a strong dollar?
There will be less exports and more imports, which widens the trade deficit. It also lowers inflation as a result of lower prices for commodities. On the downside, US companies having a significant percentage of revenue from foreign clients will suffer from weaker earnings. There could be weaker investment returns internationally. There is a possibility of more mergers and acquisitions transactions.
There is greater pressure for businesses to outsource, while gold and bitcoins that are currency alternatives will face less demand. Emerging market nations having dollar denominated debt will face greater pressure, while there will be less pressure faced by major central banks to ease.
As 2017 approaches, people in the beginning stages of online trading need the right software and trading platform to guide them to the right trades. The strength of the dollar is a vital factor here. TradeZero provides you with comprehensive guidance as 2016 transitions to 2017. Get in touch with us at +1 954-944-3885, or email us at email@example.com.
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