In a recent post I talked about how the Holiday Season is the worst time to trade Forex. This gives us all a chance to lay off active trading and give some thought to the year that will soon be with us: 2010.
In today’s post I want to share some of my own predictions for 2010. Prophecy is always a tricky business and I want to make it clear that you need to always make your own trading decisions and not base them solely on my prediction.
That being said, I do believe that what I say is likely to occur and I hope it will get you to think more about the coming year.
So, here are some of my predictions for 2010:
1. There will be more surprises as part of the financial crisis. It’s not over yet, and people will be shocked when more companies and countries will flounder with unpaid debt, inflation, and bad credit. This can have a dramatic effect on the stock markets which is why I believe Forex will continue to grow in 2010.
2. The dollar will rise. 2009 was a hard year on the USD. It took a beating in relation to practically every other currency, mostly due to how bad the US economy looks. However, I believe we’re in for a reversal in 2010 for a number of reasons:
- The US economy is showing signs of improvement.
- The zero level interest rates in the US are predicted to rise in 2010 which will make the Dollar a more attractive currency.
- Other countries which seemed to have avoided the crisis will show their true colors in 2010. Some countries are a disaster waiting to happen.
3. The Euro will suffer. Some of the countries which will take a beating in 2010 are part of the European Union. Greece is already in deep trouble and Spain is not far behind. The Euro is used in too many countries with different financial conditions and it’s difficult to maintain a policy that’s right for them all. I believe that the Euro will be under a lot of pressure in 2010.
4. More money will flow into the Forex market and those with the right kind of knowledge will earn big. Now is the time to train yourself, to get the right kind of Forex education and to prepare for the major profit potential in 2010.
Merry Christmas and let’s get ready for 2010.
