The Top Financial Instruments To Watch In 2019

2018 was an important year for a number of securities. This article will attempt to look at the most important securities that investors will pay close attention to in the coming year.

Palladium

For the second year in a row, palladium was the best-performing metal in the industry. This was because of the new fuel standards that favor diesel vehicles than gasoline-powered ones. Most of the palladium is used in the diesel vehicles as a catalytic converter. This is a process which reduces the amount of pollutants coming from vehicular fumes. With the price of an ounce of palladium above $1200, traders will pay a close attention to the metal to see whether the upward trend will continue.

USD

The USD has become a dominant currency this year. The reason for this is that the Federal Reserve has continued to increase interest rates. Also, other countries such as Japan, Australia, and the European Union have seen slower growth. Therefore, as the Fed starts talking about going easy on the rate hikes, there is a probability that the value of the USD could start easing. However, this will depend on the performance of the peer currencies.

GBP

The sterling will be watched closely because of 2019 will be the most consequential year for the UK. This is because the country will separate itself from the European Union in March. This will usher in a new period in the country. An orderly Brexit will be positive for the sterling while a disorderly one will be disastrous for the currency. Already, the Bank of England has warned that leaving the EU without a deal will be worse than the global financial crisis. Therefore, traders will be paying a closer attention to the happenings in the UK.

Nasdaq

For years, the tech-heavy Nasdaq has been the driver of stock performance in the USA. Investors were attracted by companies like Apple, Google, Amazon, and Netflix. To them, these companies would do no wrong. This led to the index moving up significantly. As the year is ending, the index has turned negative as investors start to worry about the growth of these companies. Apple and Amazon have all fallen from their peak valuation of more than $1 trillion. Apple seems threatened as growth of iPhone sales plateaus. Therefore, traders will pay a close attention to this index.

EUR

The EUR will be a closely watched as traders pay a closer attention to the growth of the European Union. They will also watch out for the progress of the monetary policy of the union. Already, the EU has guided that it will start normalizing possibly in September. The hopes of an interest rate hike will meant that the EUR will likely start moving up in the coming year.

Crude Oil

Crude oil is currently trading near the lowest level this year. The reason for this is that the market is facing an oversupply of the commodity. Investors are also anticipating demand to reduce as the global supply eases. Therefore, in the coming year, traders will watch out for the price of oil and how OPEC will react to it.

Bitcoin

After shedding almost 90% of its value this year, traders will pay a close attention to the price of Bitcoin. Many expect that the price will continue to decline as more people continue to exit the industry. There are other analysts who expect the price to start moving up. Therefore, traders will pay a close attention to Bitcoin and other cryptocurrencies.

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