Forex Predictions For 2010
Making predictions is always risky because the chances of you being 100% correct are pretty slim. This Forex prediction for 2010 is based on my own opinion only and how I analyze the market and the world’s economy. Don’t base your trading decisions on my opinion only. Make sure you actually believe the same things I do.
That being said, now I can say what I believe will happen in the Forex market in 2010:
1. The USD will rise – The economic crisis, low interest rates, and big deficit weighed down on the US dollar throughout 2009 and brought it to very low levels. The troubles of the American economy are not over. There are still challenges to face as the deficit is still huge and the economy is still not back on track.
However, there are signs of improvement for the future. In addition, there is indication that the FED will raise interest rates in 2010 which is certain to cause the dollar to rise. Forex Predictions For 2010
2. The Euro will fall – I can’t say by how much but I think the European currency is heading for a decline. There are just too many unstable nations in the European Union, too many shaky economies. We all know how Greece is in serious trouble and Spain is not far behind. There are many more nations (including Britain) which are in a deep financial crisis.
While the USD has already suffered due to the financial situation in 2009, in 2010, the EUR is set to bear the brunt.
3. Political instability may cause major fluctuations in oil prices and currency values. The West seems on a road for a confrontation with Iran which may have a dramatic, short term effect on the market.
4. As to the market in general, I believe that it is going to grow in size. More money will enter the market and it will continue to be the biggest financial arena in the world. More new automatic tools will be developed, and, as has been before, there will be plenty of opportunities for savvy traders to make big profits.
There you have it, my personal Forex prediction for 2010. I hope this will prove to be your most lucrative year ever. Good luck.
2010 is the time to dig deep, expand your trading knowledge, practice, and create an array of trading tools and methods which you know how to work with. Forex Predictions For 2010