Foreign exchange rate markets are set for some high volatility during 2016, with the South African Rand (ZAR), Australian Dollar (AUD), Swedish Krona (SEK) and Norwegian Krone (NOK) exchange rates all set to fluctuate.
Some currency pairs can swing 30% in a year, with highly leveraged markets and massive currency swings some traders will be making some huge profits in this £2 trillion a day market during 2016.
But which currencies will show the best growth? Which currency will be the best investment? And which currencies are best avoided during 2016?
Here are some major conversions for your reference:
The Pound to South African Rand exchange rate: GBP/ZAR converts at 23.695
The south african rand to pound exchange rate: ZAR/GBP conversion is 0.042.
The south african rand to swedish krona exchange rate: ZAR/SEK conversion is 0.521.
The south african rand to norwegian krone exchange rate: ZAR/NOK conversion is 0.544.
The south african rand to australian dollar exchange rate converts at 1 ZAR is 0.088 AUD.
NB: the forex rates mentioned above, revised as of 9th Jan 2016, are inter-bank prices that will require a margin from your bank. Foreign exchange brokers can save up to 5% on international payments in comparison to the banks.
Australian Dollar (AUD) Exchange Rate Positions Up 35% Since 2013
Short Australian Dollar (AUD) positions have yielded a massive 35% gain since 2013, the Australian Dollar has gained some ground over the past few months which could present a good opportunity for the canny Forex trader to get a good entry and short the Australian Dollar for some good gains during 2016.
Pairing the ‘Aussie’ (AUD) with a strong currency like the American Dollar (USD) could be a good move, that’s our first currency investment, short Australian Dollar and long US Dollar.
Rand exchange rate forecast to gain or lose 20% in a week amid heightened volatility.
The South African Rand (ZAR) is also displaying heightened volatility, good liquidity and heavy trading volume. Soft commodity prices, general global instability and a volatile domestic picture are all pushing volume out of the Rand, this high-risk currency isn’t for the faint hearted, the South African Rand (ZAR) can gain or lose 20% in a week, if you’re on the right side of the trade then this could be a big winner during 2016.
As an investment currency the Rand might be hard to beat, the US Dollar (USD) to South African Rand (ZAR) exchange rate has rallied from 8USD/ZAR to over 16 USD/ZAR since 2012, the trend is strong and some traders have already made massive profits on the currency pair.
Is the South African Rand (ZAR) the Best Exchange Rate to Invest In?
Could this trend be close to reversing?
‘As long as commodity prices are low and the South African economy remains in turmoil I think we will continue to see a weaker Rand during 2016”, said a senior Forex broker today “I’m backing the Dollar against the Rand right now, the Fed are the only central bank currently raising interest rates, they’ve got a strong economy and will benefit from lower commodity prices, I’m long USD to ZAR and likely to remain that way during 2016.’
Watch this website for more 2016 exchange rate predictions, in our next report we will be looking at the Scandinavian Currencies, the Swedish Krone (SEK) the Norwegian Krone (NOK) and the Danish Krone (DKK). What does the market have in store for these currencies during 2016 and which currency should you pair them with for the best investment return during 2016?
So far this year the Norwegian Krone has been struggling amid persistently low crude prices. The value of black gold is currently trading around an eleven-year low. Chinese economic concerns are also having an impact on the appeal of the commodity-driven currency.
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