Alternative investment market: currencies

<>
Prior to instability that can be generated in the equity markets in the first half of the year, the currency market can be created as an investment option for small and medium investors. In this regard, it should be remembered that the recent Ebury report shows that “it is remarkable that the performance of the dollar was mixed against the main currencies of emerging markets, many of which performed much better than the returns of the US economy. global will decrease ”.

Al mismo tiempo, en opinión de Ebury, la decisión de la UE de no aplicar sanciones contra Italia por su déficit presupuestario indica una visión más tolerante de un estímulo fiscal adicional. Esto significa que, según Ebury, una flexibilización monetaria adicional puede ser menos necesaria, lo que es positivo para el euro a medio plazo. Sea cual sea el caso, todo parece indicar que esta moneda será una de las más activas dentro de este importante activo financiero. Donde solo es viable explicar cuál es el cambio sobre el que se van a realizar las operaciones: dollar, Swiss franc, Japanese yen, etc.

Positive news on the dollar

Last week's positive news on the trade front was overshadowed on Friday by a very strong payroll report in the United States, according to the Ebury study. Where job creation is found to have recovered strongly since its fall in the fall of last year, real wages continue to grow moderately but steadily. There is no indication that there is a recession or even a significant slowdown. Following the report, markets appeared to rule out any opportunity for an additional 50 basis point cut at this spring's meeting. Federal Reserve. Although we believe that a cut is politically unavoidable, we do not see the conditions for a sustained cycle of cuts.

One of the keys by which this international currency will be directed is the decision that the United States monetary authority (FED) may make. In the sense of whether or not interest rates will rise in this economic area and that will also be decisive for the evolution of international equity markets. Where, depending on the decision made, you can go one way or another. It cannot be forgotten that the US dollar is one of the currencies in where more positions are opened by small and medium investors. With a very high trading volume and above the rest of currencies.

The pending Brexit pound

The pound sterling is another of the most active currencies in the international market. In this regard, the recent Ebury report highlights growing signs that Brexit uncertainty is beginning to affect UK business confidence. PMI business activity indicators fell below the 50 level, indicating a contraction. This week we will see if this loss of confidence is reflected in the real economic data when the GDP growth during the last three months of last year.

At the moment, it can be said without error that it is one of the most volatile currencies. With very wide differences in their maximum and minimum prices that allow the commercial operations. In particular, due to the movements derived from the exit of Great Britain from the European Union. Consequently, it is true that savings can be made profitable if they know how to adjust the entry and exit of their positions in the foreign exchange market. Fundamentally with its changes with the euro and the US dollar.

While on the other hand, it must not be forgotten that the general trend in recent weeks is a clear rebound in the dollar and that it may give some clue to the decisions of small and medium investors. Even when in operations of very short space of time, what is the period of permanence to which these operations are directed. Whatever the case, it is one of the options available to retail investors so that they can make their savings profitable in the second part of the year. Beyond another series of technical considerations that can influence the evolution of these important financial assets.