Goldman Sachs shares his predictions for the upcoming 2017 - Materials AMarkets.
1. Dollar Will Benefit
The rate will be increased in December, with a probability close to 100% - writes portal bloggers ZeroHedge.Trump has set his sights on strong protectionist measures and control of immigrants. It's a great ground for the rise in prices. Inflationary spiral involves systemic monetary tightening. The EU will increasingly work to spin around BREXIT. It will be much pressure on the British currency. Pressing factors for the euro - a referendum in Italy, the elections in France, Germany and the Netherlands. Goldman Bankers believe that the dollar in 2017 will grow by 10% against the euro and pound.
2. Trump - evil for yuan
Yuan will be systematically and continuously against the dollar to sink the entire 2017. The main difficulty for the government of China, in order to maintain the stability of the yuan need to increase the rate of the Chinese currency against the background grows stronger dollar. And here at once there are serious risks of capital outflows. In 2015, the dollar rose against the Chinese currency by 7.5%. It is expected that the pace of the yuan weaken in 2017 will be slightly weaker, but will systematically weakening.
3. Developing regions - an outlet for investors
Goldman advises investors to buy the currencies of developing countries - Russia, Brazil, India, South Africa.currency basket Growth is expected to reach approximately 14% over the next year (carry trade plus exchange rate growth). After the US elections, the currency sold off at random. The current situation - a good point to enter the currency.