Due to the increasing demand in the foreign exchange market and due to the tight competition, there have been more and more people whose interest lies on the different ways in means where in they will be able to gain an edge over the other traders in the foreign exchange market. With this trend, there have been many tools like ebooks, software, and many others which are now being advertised as well as being sold all over the Internet. But the question is, do they really work? Moreover, there are also other traders who try to keep for more ways in order for them to be able to improve their trading practices; this is where the forex predictions started to take place. These predictions are one among the many tools which are now being used today; these are actually based also on the different outcomes of the different trading days which already took place sometime before.
In the year 2008, Euro has been gaining a good grip in the foreign exchange market. Until this year in the month of November, it has been said to be the safe heaven for many investors especially due to the financial crisis the world is experiencing right now. On the other hand, the British pound since the British economy is now facing very serious economic problems, the value of the British Pound will continue to drop I value. Furthermore, the economy of the United States is not getting better in conjunction with the global recession that greatly hit this country; this is so due to the reflected interest rate of 0.25% from the federal area. Due to these facts, the trade values of the GBP and the USD in the future will mostly be influenced by the strength of the European economy. Furthermore, the European Central Bank still consists of high amounts of flexibility which is found in its central interest rate; but, the British and the Americans will still have a very limited room in order for their rates to move even if the rates are already nearing almost zero percent. As for the current and future success of the Euro this is more or less due to the fact that it has very relative and stable interest rates; but still, it needs to be studied if indeed their policy will not be able to hinder the national governments while they are tackling the credit crisis.
A prediction was made that the current from the year 2008 will still continue; that the Euro will continue to gain its value as against the dollar as well as the pound due to the European economy’s stability right now. In November 2009 it was predicted that the EUR/ USD is most likely to go up as high as 1.48 and then it has a high potential to go down to about 1.47; the GBP/ USD has high chances of going up to as high as 1.66 but still it has high potentials to go down; the AUD/ USD will go up to about 0.91 and after getting that peak it will potentially start to go down; and the USD/ CHF is said to go down to a value even lower than 1.02.
