Forex Crunch How will EUR/USD Perform in 2010? These 5 Insightful Forecasts Offer Answers

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How will EUR/USD Perform in 2010? These 5 Insightful Forecasts Offer Answers Posted: 31 Dec 2009 12:00 AM PST As 2010 begins, I’ve searched the web for forecasts on the forex market’s most popular pair: EUR/USD. I found 5 insightful forecasts for this pair. Most of them see a stronger dollar in 2010. Here’s the list + a few notes about them. I’d be glad to here more thoughts! If you have a site / blog with a 2010 forecast for EUR/USD, please link to here so I’l notice it. I’ll be happy to read it and link back, enlarging this initial list of 5 predictions. Let’s start: Marc Faber: 5-10% rise of dollar against the Euro in 2010. Marc Faber, publisher of a newsletter called “Gloom, Boom and Doom”, is a highly regarded analyst, but he isn’t always correct. In an article in Bloomberg, he says that the bearish betting on the dollar has become too crowded, and that the dollar and the stock markets will continue rallying together, as they did in December 2010 (different than the previous months). John J. Drummond: Believes that the dollar will reverse its losses and triumph over the Euro. This forex expert gives a few reasons: the financial crisis will still be felt in Europe, Ben Bernanke will raise the rates and more. Mitul Kotecha: Sees EUR/USD falling through most of 2010. In this article in FXStreet, the known forex expert sees a small rally in Q1 but afterwards, a fall of the Euro is expected.  The article contains predictions for other currencies as well. Eric deCarbonnel: Sees the dollar’s collapse in 2010 due to a colossal food crisis which will devastate the United States. In his apocalyptic scenario, the world will run out of food and this will cause global turmoil which will send the US economy plunging – and the dollar with it. Greg Group: Advises to buy the dollar and sell the Euro in 2010. He sees continues dependence on the US dollar, especially from China, and isn’t too hopeful about Europe. In an article in Seeking Alpha, he examines both sides of the Atlantic, sees EUR/USD falling, but also advises caution. What do you think? Want to see what other traders are doing in real accounts? Check out Currensee. It’s free.

Forex Daily Outlook – December 31st 2009 Posted: 30 Dec 2009 02:00 PM PST On New Years Eve, there still are a few notable events, especially in Britain. Here’s the last outlook for 2009: Here’s a song for the new year, by U2: Arabic version of this post Australia’s Private Sector Credit is expected to show a small rise of 0.1% after being unchanged last time. For more on the Australian dollar, read the AUD/USD forecast. In Britain, Nationwide HPI is expected to show another month of rise in house prices, this time by 0.4%, following a 0.5% rise last month. The recovery of home prices doesn’t fully affect the economy. Later in Britain,  the BOE Credit Conditions Survey will shed some light on borrowing in Britain, and on the whole economy. For more on the Pound, read the GBP USD forecast. In the US, weekly Unemployment Claims, which helped push the dollar up on Christmas Eve, are expected to rise back again, from 452K to 460K this time. That’s it for 2009. Tomorrow the markets are closed. See you in 2010! Want to see what other traders are doing in real accounts? Check out Currensee. It’s free.

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