5 Trending Currency Pairs in 2022
Currency pairs are the most popular trading instruments in the Forecast System, and they quote assets whose price depends on buying or selling another currency.
The Forecast System presents optimal currency combinations(OCC) for 2022. It is a unique tool that can be used to forecast changes in the market, find new opportunities for investments, and generate trading signals. Forecast systems can provide a wide range of valuable information for beginners and skilled traders. Here are five trending currency pairs on Oriontero in 2022;
Table of Contents
According to Forecast System data, the Japanese yen may rise against the euro in 2022. Other factors supporting this tendency are a weaker dollar and low volatility in equity markets. EURUSD and USDCHF (swiss franc). Central banks’ monetary policy is the critical factor affecting the growth or decline of currency rates. The Federal Reserve System (the USA central bank) is likely to raise interest rates in 2018-2020, strengthening the dollar and putting pressure on European currencies.
The euro is forecast to weaken against the US dollar in 2022. According to analysts, the European Central Bank (ECB) will likely expand its monetary stimulus to support the eurozone’s economy and maintain low inflation rates. The EURUSD pair may fall if volatility on stock exchanges grows and investors increase their investments in riskier assets like stocks and commodities.
Additionally, this pair may grow if the US administration tightens its fiscal policy, reducing GDP growth and inflation rates. GBP/USD & USD/JPY. The Bank of England (BoE) will likely keep a moderate monetary policy in 2022, strengthening the sterling against the dollar.
According to the Forecast System, the British pound is forecast to weaken against the US dollar due to low volatility in equity markets. It will likely remain at around 1.20 per dollar in 2022 if Brexit negotiations are successful and investors maintain their interest in the UK economy.
This pair may grow if there is a stock market correction, leaving investors more prone to invest in safe assets like the pound.
According to Forecast System data, the Canadian dollar is likely to strengthen against the Japanese yen due to a weaker dollar and low volatility in the equity market. Analysts believe that this trend will remain in 2022 if tensions in North Korea do not escalate into a full-scale war.
In addition to that, this pair may grow if the BoE continues to tighten its monetary policies.
The Canadian dollar is forecast to consolidate in 2022, as is the Swiss franc. The dollar will likely reduce against a basket of currencies due to low volatility in equity markets. The US Federal Reserve System does not increase interest rates more than expected.
Additionally, this pair may fall if central banks of developed countries remain with their moderate monetary policies, which would lead to increased volatility in global equity markets.
Forecast systems can provide a wide range of valuable information for beginners and skilled traders. In 2022, the five currency pairs mentioned above may have strong fluctuations. So expect to see them moving in both directions.
Then, when using Forecast System, remember that this is just a tool that may show you the general tendency of prices and does not guarantee 100% accuracy. But it can help make better decisions about your investments and trading plans.