What to Trade in Forex 2024
Pro traders plan their activity. Previously, we discussed the anticipated market trends of 2024. In today’s article, Headway experts share what assets are the best for your trading in the upcoming year due to their volatility and high potential. Explore the offering and start now with Headway.
Trading opportunities in 2024
In the year ahead, promising investment opportunities will be available in the market:
Metals. The demand for metals, especially copper, is increasing due to the rise of electrification. Geopolitical risks, such as tension in the Middle East, can impact oil prices.
Private markets. Private equity, credit, and venture capital offer potential high returns but involve direct engagement with invested companies.
Equities. Opportunities across asset classes are limited, leading to a focus on alternative investments and alpha generation. Sectors like consumer staples, utilities, and healthcare are expected to perform well as interest rates increase.
Bonds. Bond valuations are currently fair, with higher long-term rates expected. Despite short-term volatility, rising interest rates are a significant development for long-term investors.
Alternative investments. Investors seek opportunities that align with their values, such as clean energy and socially responsible companies. Expert fund managers should be consulted to access technological advancements.
Digital currencies. The potential of digital currencies is being explored, but investors should be cautious and maintain a diversified portfolio.
Quality stocks. Stocks with high-quality characteristics, such as high returns on invested capital, strong operating margins, and minimal debt, are expected to perform well. Quality bonds can also provide steady income.
Currency pairs to look out for
EURUSD. The Euro is anticipated to strengthen against the US dollar, driven by the Eurozone’s economic resilience and the US economy’s relative weakness. However, the US dollar is expected to gain strength against the Euro due to the robustness of the US economy and vulnerabilities in the Eurozone.
The forecast for EURUSD ranges from 0.88 to 1.21, depending on factors like US inflation, Eurozone crises, geopolitical tensions, and shifts in global energy supply.
GBPEUR. The British pound is expected to appreciate against the Euro, reflecting the strength of the British economy compared to the Eurozone. However, the Euro is anticipated to strengthen against the British pound due to the Eurozone’s economic stability and the challenges faced by the British economy.
USDCAD. The US dollar is projected to strengthen against the Canadian dollar due to the strength of the US economy in contrast to the relatively weaker Canadian economy. Conversely, the Canadian dollar is expected to gain strength against the US dollar, driven by the resilience of the Canadian economy despite economic challenges in the US.
USDJPY. The US dollar is expected to appreciate against the Japanese yen, reflecting the relative strength of the US economy compared to Japan. However, the Japanese yen is anticipated to strengthen against the US dollar due to the robustness of the Japanese economy and vulnerabilities in the US economy.
USDAUD. The US dollar is forecasted to strengthen against the Australian dollar due to the strength of the US economy compared to the Australian economy. Conversely, the Australian dollar is expected to appreciate against the US dollar, driven by the resilience of the Australian economy despite weaknesses in the US economy.
Other assets to trade
When considering the most expected volatile and high-potential forex assets for 2024, both major and secondary currencies come into play:
USDMXN. The Mexican peso has exhibited volatility throughout 2024, and this trend is expected to continue. The US dollar is anticipated to strengthen against the Mexican peso due to the strength of the US economy, while the Mexican peso is expected to weaken due to economic challenges in Mexico.
USDCNY. The US dollar is projected to gain strength against the Chinese yuan due to the robustness of the US economy and weaknesses in the Chinese economy. However, the Chinese yuan is expected to strengthen against the US dollar due to the strength of the Chinese economy and vulnerabilities in the US economy.
EM FX VS G9 FX. In 2024, emerging market forex pairs are expected to outperform G9 (Group of Nine) forex pairs. This is driven by strong economic growth in emerging markets and relatively weaker economic performance in developed markets.
Oil prices. Oil prices are anticipated to have a modest upward potential in 2024, influenced by geopolitical escalations and supply disruptions. However, these prices are also expected to experience volatility due to these factors.
Stay informed, assess your risk tolerance, and consider diversification to make the most of trading in 2024 with Headway. Start now →
Follow us on Telegram, Instagram, and Facebook to get Headway updates instantly.
