What are the Top Emerging Currencies Pairs in Forex Market?
Brexit remains the single most contentious issue in the UK economy, although it’s interesting to note that one of the arguments extended in favour of leaving the EU is the projected growth in emerging markets across the globe.
This is a huge misconceptions, as GDP projections for 2050 show that developing economies such as India, Brazil, Mexico and Indonesia will grow at the expense of nations like the UK over the course of the next 31 years. During this time, the UK could well tumble out of the top 10 in terms of global GDP, whilst both China and India are likely to supersede the U.S..
With these points in mind, it should come as little surprise that emerging currency pairs are becoming increasingly popular amongst forex traders. Here are some of the most popular and lucrative pairs:
We start with the USD/MXN pairing, which has come under increased scrutiny as relations between the U.S. and Mexico have become strained during the Trump Administration.
This has certainly created greater levels of volatility between these two currencies, creating an opportunity for investors to speculate on the strengths and weaknesses of the MXN through a pairing that establishes comparative value in real-time.
The popularity of this pairing has also come amid the transformation of the Mexican economy, with the MXN now offering highly liquid access to Latin America and numerous opportunities associated with emerging markets.
As the ninth-largest oil producer in the world, Mexico’s currency is inextricably linked to its natural resources and will often fluctuate in line with commodity price shifts. This was borne out recently, when Oanda reported that the MXN achieved predictable gains against the USD after oil prices soared on the back of sustained supply cuts.
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