According to analysts at FortFS, despite the Fed’s pigeon rhetorics, USD will still look attractive in 2020. USD will have a higher interest rate than that of its main rival, EUR. This imbalance in the rates of the USA and other countries guarantees a higher yield on US Treasury bonds compared to bonds of the EU, Japan, Australia and other countries with active economies. This fact determines the main dynamics of the FOREX market.
In some periods of the year, the AUD and CAD commodity currencies will provide good chances for speculators, but GBP will be the most promising currency against USD. Despite the fact that the British rate is lower than in the United States, the political stability guaranteed by the British Conservative Party will provide serious support to the GBP. It was political instability and not the economy that undermined the GBP over the past year to a greater extent, and now that the Conservatives won the parliament, the pound immediately resumed growth.
All facts provided above do not mean that the USD does not have its own problems and risks, but today, it is still the most stable currency with high rates of return. However, experience shows that investors are always looking for an alternatives to diversify their investments. Thus, according to FortFS analytical department, GBP looks like the best alternative to USD in the near future and therefore, has good growth potential.