Bennie Kincaid 
The popular opinion is that the greenback will remain strong if the international economy enters a global recession and the Federal Government decides to increase the interest rate.
There is no denying that 2022 was the year of immense economic crisis, where all the currencies plunged. But the greenback stood stronger even during that period.
Currencies such as the Swiss Franc, Japan’s Yen, and Bitcoin, and metals such as Gold, Silver, and Copper have lost their market value. But the USD was the only currency that stood relatively stronger.
Technically speaking, the price of currencies is period oriented. Economic indicators for 2023 are positive as compared to 2022.
It is on the card that investors may begin to think that the USD is overvalued. Experts are also saying that 2023 could be the year when the USD price might decline slightly.
So, Which Currencies Are Likely to be Among The Best Performers in 2023?
Experts have high expectations from AUD, Euro, Indian Rupees, and GBP. But USD remains on the top of the list.
But currency can only do its best. All the currencies rise and decline around the other currencies. That’s why the money market works. But in 2022, all the top coins have fallen against the USD price.
A look at USD performance indicates that the currency was 14% up against JPY. USD was 12% up against GBP. Against Euro, USD has risen by almost 17%.
The similar gain was monitored against currencies such as Euro, AUD, Canadian, and New Zealand dollars.
The Hawkish U.S. Federal Reserve was the biggest reason behind the momentum of the USD in 2022.
Feds have lifted the policy rate high to set off inflation. But USD somehow retained its momentum.
The current momentum of the USD was against the other top currencies.
But if we compare USD performance in 2022 against USD performance in previous years, then 2022 was the year of crisis.
A renowned Forex analyst at City Index and Forex.com believe that all the other currencies will still be volatile for the first quarter of 2023, except the greenback.
The chances are high that the greenback/USD can replicate another bullish run.
The Euro Can Emerge As the Second Strongest Currency in 2022
Talking of Euro, the biggest reason behind the decline in Euro price was the Russian-Ukraine war. As a result, Europe has cut the gas supply from Russia.
This has given birth to the energy crisis in Europe. As a result, the price of energy skyrocketed. High energy prices have slowed down the industrial and economic growth in Europe. This has forced Euro to decline in terms of its prices.
However, 2023 could see a significant change in terms of Euro prices.
Recently, the European Central Bank has gone hawkish about its reserves and raised the policy rate by 2.5%. Moreover, the officials have also indicated that further rise could be coming.
A German market analyst Heraeus is hopeful that Euro will rebound its price after falling dramatically in 2022.
At some point in 2023, Euro will recover and get rid of this volatile market grip.
The GBP/ Sterling To Go Up in 2023
After the JPY, GBP will be the worst-performing global currency in 2022. Only JPY has fallen more dramatically than GBP.
The sole reason behind this decline was the intense economic crisis in the U.K., which is still going on. Back in 2022, experts were worried that GBP might hit parity with the USD.
However, the currency recovered slightly and went up by $1.20 after the current PM Rishi Sunak, emerged as the victor.
Talk of 2023, Morgan Stanley has predicted that GBP will bounce back strongly in 2023 and might be among the top-ten surprises in 2023. This statement came after energy prices decreased and Europe’s inflation eased.
Experts have agreed that Great Britain’s Pound recovery can be extremely bumpy.
