In 2019, the forex market may be more vulnerable when compared to the trend of 2018 and this will continue till the end of the year. This is due to the stocks that are going down, reduction in credit, intensifying volatility; rise in the borrowing prices, wage growth is dwindling and all this for the collapsing global economy. All these are uncertain yet important factors contributing to the trend that is going to happen in 2019. While 2018 was an extraordinary year for the USD where the growth was 5 percent and saw a low in February which was still on a high by 9 percent.
Impact on the US economy
Initially, the impetus for USD, in 2019, was extremely low which gained momentum later. What is to be understood is how the greenback will work? Whether it will keep moving forward or take a reverse from 2018’s gain? Whatever it may be, USD is going to face some challenges in 2019 as the economic development of America may face some hurdles. If you are thinking of trading in this situation, your topmost priority should be to keep your money secured, which will be provided by Avatrade. They are the pioneers in the world of trading and provide a secured system for all your trading options.
The US business scenario has seen some vital changes in market pricing as lots of Chinese patrons have cut down their expenditures. Not only this, 2019 will bring some major challenges, both political as well as economic for the US market. There will be a growth in the interest rates, decrease in stocks, deteriorating condition of the economy and much more. With both the economic and political situations weakening day by day, the budget rules are also being tested. The lowest level was hit when EU unemployment happened which was improved later on. Here, trade is going to play the most important role to alleviate the market and keep up with its expansion in 2019.
Impact on the currency due to BREXIT factor
It has been reported that the no deal BREXIT needs to be avoided in order to speed up the economy. US President, Donald Trump had increased the tariffs on the EU auto sector which needs to be called off to maintain a tension-free US-China relation. The earnings have seen a rise of 3.3 percent rate which is quite nominal and is an indication that the revenue is also growing. However, the market is said to be volatile until the apprehensions and stress related to Brexit comes to an end. While you get your trading process done via Avatrade, the spread is also very low with them.
Japan fighting against deflation
As 2019 looks challenging for the economy of Japan, they are fighting against the deflation. It shows minimum stability in the success rate as the global growth becomes intimidating for the economy which is export-driven. 2018 saw a start of the PMI Composite printing with a 52.8 and towards the end went to 52.4. This was a healthy beginning that saw a rise by 2.0 percent but could not manage to hold up and crashed to -0.3 percent by the year-end.
Gradual improvement has been planned for the economy which is mandatory as per the growth trends. The currency value will be reduced until the mid-year 2019 with a growth in the supply of money. Unemployment will remain at 2.4 percent and CPI contracting will go from 1.4 percent to 0.8 percent in the span of a year.