Global Economic Intersection
Advertisement
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
Global Economic Intersection
No Result
View All Result

Four of the Best Currencies to Invest in for 2012

admin by admin
August 27, 2012
in Uncategorized
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Article of the Week from Money Morning

by Larry D. Spears, Contributing Writer, Money Morning

If you had to pick one word to describe the outlook for the world’s major currencies heading into 2013, it would have to be “inconclusive.”

Since late May, none of the leading currencies has managed to establish a prolonged trend, with choppy action being driven by continued economic instability in Europe, a sluggish recovery in the United States and slowing growth in the Far East.

Even the Japanese yen, which has been one of the strongest currencies the past few years and held fairly steady through most of the summer choppiness, has weakened in recent days in the wake of a slowing Japanese economy and falling export business, much of the latter blamed on the strong yen.

And the indications are the world’s major currencies will likely stay that range bound for the remainder of 2012. Investors can expect price movements to be driven by short- term speculative reactions to each new economic report, unexpected developments in the U.S. election campaign and the continuing failure of European bailout proposals.

So, what’s a currency-conscious investor to do?…

The Best Currencies for 2012

As was the case in the early part of 2012, the answer is to continue to look beyond the mainstream to find the best currencies to invest in.

In Money Morning’s “Outlook” series forecast for currencies, released in December, Global Investing Strategist Martin Hutchinson predicted the three “must-own” currencies for 2012 would be the Canadian dollar (CAD), the Chilean peso (CLP) and the South Korean won (KRW).

All three hit the mark, rising sharply in the first quarter of the year.

The won climbed to a high of 1115.96 per U.S. dollar in early March, pulled back to a low of 1185.62 in late May, and is now higher again, quoted last week at 1132.41, with the strength based on Korea’s low debt, balanced government budget and current accounts surplus. All three factors continue to work in the won’s favor, but sluggish Western economies could slow exports and keep a lid on the currency.

Both the Canadian dollar and Chilean peso were plays on natural resources as well as economic strength, and both did well on that basis. However, Chile’s natural resource base is more narrowly focused than Canada’s, and that could spell trouble ahead for the peso.

It hit an 11-month high of 474.98 pesos to the U.S. dollar on Aug. 9, but fell back sharply on reports of slowing economic growth in China, which imports huge amounts of Chilean copper.

That, coupled with news from Tokyo that Japan would need less copper than expected for post-earthquake/tsunami reconstruction, triggered a one-day drop of 1.3% in the price of copper futures traded on the Comex market in New York – and sparked a decline of almost 2.0% in the peso, which was quoted last week at 482.95 per dollar.

As a result, only the Canadian dollar (CAD) remains on our list of the top currencies to hold for the remainder of 2012 and into 2013. As before, that choice is based on Canada’s sound banking system, its smaller budget deficit and its wealth in energy and mineral resources.

Plus, it’s the only one of the major currencies to establish a solid trend over the past three months, rising steadily from an early June low of 1.0447 to the U.S. dollar to 0.9879 late last week, just barely off the 12-month high of 0.9868 set in late April.

That trend should continue, based on recent Canadian economic reports and the lure of relatively attractive interest rates, with the CAD possibly approaching 0.9700 by year- end.

Three More Currencies to Invest In

Aside from the Canadian dollar, the Australian dollar (AUD) is also a strong choice based on resource strength.

Although growth has slowed a bit in China and Japan, Australia is the closest source of the raw natural resources those countries need.

Australia’s own economy has also held up much better than other countries with closer ties to Europe, and though there’s some concern the strong currency could hurt exports and thus growth, the Reserve Bank of Australia has shown no interest in cutting interest rates. And, as with Canada, the higher rates make Australia a good place for foreign interests to park cash.

That’s why the Australian dollar has also trended sharply higher over the past three months, rising from a June 1 low of 1.0423 to the U.S. dollar to a recent quote of 0.9525. If the trend continues to year-end – and current forecasts indicate it should – the AUD could surpass the high of 0.9212 to the U.S. dollar that it set last February .

The third currency of interest right now is the Mexican Peso (MXN).

Mexico has its problems – most notably a government challenged by the drug cartels and internal violence – but the peso has benefited from strong speculative interest among currency traders, who want exposure to the American markets without having to hold dollars. (Mexico is the third-largest U.S. trading partner, behind only Canada and China.)

Long peso positions in the foreign-exchange (Forex) markets rose to their highest level in four months last week – nearly 82,000 contracts – and this has helped push the Mexican currency to 13.1274 pesos to the dollar, up from a low of 14.5955 on June 1. As with the Australian dollar, a continuation of that trend could carry the peso to a new high before year-end, topping the 12.6825 mark set in March.

For those looking beyond the New Year, Money Morning Chief Investment Strategist Keith Fitz-Gerald continues to recommend acquiring holdings denominated in the Chinese yuan (CNY).

He notes that, though the yuan has been under pressure since the release of China’s second-quarter growth figures, “that doesn’t change the currency’s long-term attractiveness, nor undermine China’s ascendency to global economic leadership.” He also expects the yuan to continue gaining strength against the dollar because of China’s ongoing efforts to bypass the U.S. currency through the establishment of yuan-denominated swap agreements with major trading partners, thereby further weakening the dollar’s role as the world’s reserve currency.

For those leery of direct yuan investments, Fitz-Gerald recommends utilizing an exchange-traded fund for access, purchasing shares in the Wisdom Tree Dreyfus Chinese Yuan Fund (NYSEArca: CYB).

However you choose to do it, focusing your investments on currencies that are strengthening against the dollar is one of the best ways to put extra cash in your pockets.

Related Articles at Money Morning

  • Does Weakening Eurozone Mean Recession 2013 for U.S.?

Related Articles at Global Economic Intersection

  • Investing Articles about Currency
Previous Post

Minsky and the Narrow Banking Proposal: No Solution for Financial Reform

Next Post

Chicago Fed Midwest Manufacturing Index (CFMMI) increased 1.8% in July 2012

Related Posts

Ethereum ICO Whale Address Moves 145K ETH After 3 Years Of Silence
Economics

Ethereum ICO Whale Address Moves 145K ETH After 3 Years Of Silence

by John Wanguba
August 15, 2022
Australian Court Instructs Google To Pay $43M For Misinforming Users
Econ Intersect News

Australian Court Instructs Google To Pay $43M For Misinforming Users

by John Wanguba
August 15, 2022
Dollar Fell Marginally Last Week As Inflation Seems To Peak
Economics

Dollar Fell Marginally Last Week As Inflation Seems To Peak

by John Wanguba
August 15, 2022
Mark Cuban Sued For Supposedly Promoting Crypto Ponzi Scheme
Business

Mark Cuban Sued For Supposedly Promoting Crypto Ponzi Scheme

by John Wanguba
August 15, 2022
Germany Economy Lose $265B In Added Value  Due To Rising Energy Prices And War
Economics

Germany Economy Lose $265B In Added Value  Due To Rising Energy Prices And War

by John Wanguba
August 13, 2022
Next Post

Chicago Fed Midwest Manufacturing Index (CFMMI) increased 1.8% in July 2012

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Browse by Category

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Browse by Tags

adoption altcoins banking banks Binance Bitcoin Bitcoin adoption Bitcoin market Bitcoin mining blockchain BTC business China Coinbase crypto crypto adoption cryptocurrency crypto exchange crypto market crypto regulation decentralized finance DeFi Elon Musk ETH Ethereum finance funding inflation investment market analysis markets Metaverse mining NFT NFTs nonfungible tokens nonfungible tokens (NFTs) price analysis regulation Russia social media technology Tesla the US Twitter

Archives

  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • August 2010
  • August 2009

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized
Global Economic Intersection

After nearly 11 years of 24/7/365 operation, Global Economic Intersection co-founders Steven Hansen and John Lounsbury are retiring. The new owner, a global media company in London, is in the process of completing the set-up of Global Economic Intersection files in their system and publishing platform. The official website ownership transfer took place on 24 August.

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Recent Posts

  • Ethereum ICO Whale Address Moves 145K ETH After 3 Years Of Silence
  • Australian Court Instructs Google To Pay $43M For Misinforming Users
  • Dollar Fell Marginally Last Week As Inflation Seems To Peak

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

No Result
View All Result
  • Home
  • Contact Us
  • Bitcoin Robot
    • Bitcoin Profit
    • Bitcoin Code
    • Quantum AI
    • eKrona Cryptocurrency
    • Bitcoin Up
    • Bitcoin Prime
    • Yuan Pay Group
    • Immediate Profit
    • BitIQ
    • Bitcoin Loophole
    • Crypto Boom
    • Bitcoin Era
    • Bitcoin Treasure
    • Bitcoin Lucro
    • Bitcoin System
    • Oil Profit
    • The News Spy
    • British Bitcoin Profit
    • Bitcoin Trader
  • Bitcoin Reddit

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

en English
ar Arabicbg Bulgarianda Danishnl Dutchen Englishfi Finnishfr Frenchde Germanel Greekit Italianja Japaneselv Latvianno Norwegianpl Polishpt Portuguesero Romanianes Spanishsv Swedish