Euro Rates 0
Euro rates Vs US Dollars Predictions – Where is This Forex Pair Going?
Euro Rates
Euro rates Vs US Dollars Predictions – Where is This Forex Pair Going?
Now that a new year is upon us it is time to give some thoughts as to how the Forex market will look in 2010. In this article I want to focus on the Euro rates and try to predict whether this will be a good year for the European currency or a bad one.
2009 was certainly a fine year for the Euro rates as it ended the year higher in relation to the US dollar than it began it. However, as the New Year was celebrated, the Euro rates was no where near its high of 2009 and it seems as if the infatuation of traders and investors with it has turned sour.
In January 2010 this trend has continued and the EUR/USD currency pair’s price has fallen, showing how the USD was suddenly viewed in a much more favorable light than the European currency. Is this trend going to continue through the rest of the year?
My Euro rates prediction for 2010 is that this will not be a strong year for the European currency. I base this prediction on a number of facts:
1. There are some countries, members of the EU, which are in serious financial difficulty. These include Greece and Spain who are in crisis mode, but also some of the bigger economies. Even Germany is having problems. All these financial difficulties are a burden on the Euro rates and a cause for much uncertainty. Where there’s uncertainty, there will likely be less value.
2. The overall structure of the EU, with countries with tremendously different economies and a more or less independent interests, it is difficult for the European Central bank to settle on the best financial policy, one which will help the Euro rates retain if not increase its value in relation to other currencies.
3. 2009 was the year of the Euro rates mainly because the US dollar was under so much pressure. Now it seems that the American economy is recovering from the financial crisis and there are even signs of increasing interest rates in the US in the near future. All this will help the dollar and weaken the Euro.
For these reason, I predict that the Euro will have a weak year. You can trade based on this prediction or not as you choose. It is always you decision to make. I wish you the best luck in Forex trading in 2010. May you profit a lot.
Source : by John J. Drummond
