3 Currencies That Will Rise

Hello, fellow forex traders! We do not often touch on the topic of fundamental analysis on the pages of this portal, but, as the experience of the ruble and dollar pairs over the last year shows, fundamental analysis is indispensable. And in this review we will talk about three currencies that you should pay attention to in the coming years, as they will rise and rise strongly.

The US dollar and the euro are doomed.

Why? Because in addition to the fact that their countries show slow development, they are also burdened with exhausting debts; they have become victims of a huge increase in the money supply.

The result: serious inflation and devaluation of both currencies in the coming years.

Even if the United States does not increase its already bloated debt, the interest on it, combined with massive money printing, practically guarantees higher prices. The same applies to Europe, a region where money is printed out of thin air in order to provide financial assistance to its weak countries and banks.

Nevertheless, you can play on the fall of the dollar and the euro.

As you can see, the situation is rapidly creating a new world order of currencies. In particular, three currencies are ready for a huge upward revaluation...

There are three currencies that you should include in your portfolio today.

Relying on the solid fundamentals of countries that show economic growth rather than artificial monetary stimulus, these three currencies operate on a completely different playing field relative to the dollar and the euro.

They are expected to undergo a huge revaluation in the coming years. Let me demonstrate to you why. To begin with...

Currency No. 1 - Chinese yuan

As the dollar and the euro fall, the Chinese begin investing in their yuan-denominated assets, whose value is increasing. They invest in things such as mines, factories, other currencies, and natural resources.

At current levels, the yuan is considered a good buy. Of course, the Chinese government deliberately sets an artificially undervalued exchange rate for the yuan, not allowing it to float freely on world markets, in order to profit from Chinese goods and services.

Since the world is stubbornly opposing such a policy, the Chinese will be forced to significantly revalue (increase the value of) the yuan over the next few years. Why? There are two reasons for this...

These two factors together will force the yuan's significance in the world to increase in the coming years.

The growth potential of the yuan against the US dollar over five years will be 20%.

On Forex, the yuan is traded through the USDCNH pair.

Currency No. 2 - Indian rupee

After the rupee fell by more than 20% against the dollar over the last five years, it can be bought right now at a good price at an absolute minimum.

The Indian central bank strongly controls the rupee's exchange rate. Due to efforts aimed at combating the financial crisis, as well as to make Indian goods and services more competitive, the currency began to depreciate.

The result: an artificially weak rupee that will strengthen due to the growth trend of the world economy and money flows.

In connection with the growth of India's GDP, which in the coming years is outpacing the growth of the economies of all Western countries, India will have to raise interest rates in order to suppress inflation.

In the past, this was not a problem, since India was not a world-scale player before it began importing goods and services. It was a closed, isolated economy, where most of the population bought goods and services locally.

At present, India's middle class numbers about 400 million people, and the country is beginning to import increasing quantities of goods. This will lead to inflation, which will force the central bank to tighten monetary policy.

I expect the rupee to rise 25% against the US dollar over five years.

On forex, the rupee can be traded as part of the USDINR pair

So, this is another currency that benefits from the fall of the dollar and the euro...

Currency No. 3 - Canadian dollar

The Canadian dollar has a bright future. To begin with, Canada is rich in natural resources such as oil, timber, and gold. With the prospect of global growth, all three resources will be in huge demand in developed and developing countries, a trend that will remain for many years.

Canada also has its own powerful fiscal authority. Its AAA credit rating is secure, as the country quickly resolved its debt problems at the beginning of this century. As a result, over the last decade the Canadian dollar has risen almost twofold against its American counterpart.

In addition, Canada does not need to rescue its banks and financial system as a result of the practice of preferential lending. In fact, quite the opposite. Thanks to their financial resilience, branches of Canadian banks are now appearing in the United States in record numbers.

In short, Canada has many advantages. It is a supplier to developing markets... it has a strong and stable financial system and government.

Like the Chinese yuan and the Indian rupee, hold the "loonie" for a long period of time, and you will get a profit of 20% against the US dollar over five years.

On Forex, the Canadian dollar is traded as part of the USDCAD pair.

Remember that we are talking about currencies, and for them a move of 10%-15% is considered huge. But in the coming years these three currencies will represent a new world order in the currency market, and their growth will reflect it.

The best way to buy the yuan, the rupee, and the Canadian dollar is to open long-term positions on Forex. Do not buy everything at once. Wait for the signals of your strategy. Spread your costs over the next several months, as the US economy strengthens. Such a strategy will allow you to buy currencies at reasonable levels.

Good investments to you! And do not forget about technical analysis. Knowing the fundamental prerequisites is useful, but it is technical analysis that makes it clear exactly when it is worth acting.

Best regards, Pavel Vlasov TradeLikeaPro.ru