With the recent turmoil in world markets, Forex analysts predict 1.31 EUR/USD before year's end
Nicosia, Cyprus -- (ReleaseWire) -- 10/17/2008 -- With the recent turmoil in world markets, many investors have found themselves at a loss as to what to believe in. It seems incredibly difficult these days to make a decision as to the fate of world markets. Worse still is the decision making needs of the traders in the forex market. Forex analysts at Forexyard.com have been piecing together the fragments of the current post economic bust in an attempt to understand what, if any, sense can be made. And, it turns out, quite a bit of sense can be ascertained, from a foreign exchange and macro perspective. Where stock traders are going wrong, forex traders are going right.
Let's look deeper at forex trading current situation http://www.forexyard.com. Traders are seeking logic, safe havens, and most importantly security. So, how does this affect the current foreign exchange picture? Quite simply, USD bullishness. Seems kind of counter intuitive, but the fact that the US economy is in seeming shambles, actually strengthens the American Dollar. Traders are looking for a better option than what they may currently be holding be it Euros or Sterling. When the whole world takes a turn for the worst, traders turn to gold and dollars.
However, the unique aspect of the current blow up is the fate of the price of crude oil, which has tumbled over 46% while the US works out a comprehensive bailout package, backed by the FED. The fact is, the dollar will not be able to sustain any real long term strength, but forexyard's medium term target is now 1.31 before year's end but expect a rebound of the EUR and GBP in 2009 with end of quarter 1 expectations hovering closer to 1.47 EUR/USD.
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