Forex Currency Predictions For 2008

Forex Prediction

Forex currency predictions are always hard to make, especially in volatile times like the one we are in now. But I will still try to do my best and provide you with my Foreign Exchange prediction for 2008 in the hopes that it will help you make more money in the following month.

Of course, I can't give a forex prediction for every single currency in the confines of this article, and so will limit myself to just a few.

USD prediction - The US dollar has lost a great deal of its value in relations to all the other major currencies in the world. In recent days it has strengthened somewhat and I've even heard evaluations that it will continue to strengthen in the coming months. I disagree. The Fed is likely to continue to reduce interest rates which will make the dollar unattractive in comparison with other currencies. Furthermore, the crisis in the financial sector has still not said its final word, and we're likely to see more investment institutions declare massive losses in the coming months.

Euro Prediction - The Euro has increased in value in relations to the US dollar and has even broken record high levels. This is a trend which I believe will continue in the near future for a number of reasons: Europe is less affected by the crisis in the financial sector, Europe shows little signs of a recession, the European interest rates are much higher than those in the US, Japan, and other central countries. Therefore, the Euro will continue to rise in value,and I would hold it.

British Pound Prediction - With all the talk about the recession which is looming over America, people miss the fact that the British Pound is also going through a slump. And indeed, the pound is under a great deal of negative pressure. The reason is that London is a huge financial center, and since the crisis is mainly in the financial sector, the British economy is likely to suffer.

To sum up, invest in the Euro, not in the Dollar or the Pound. This is my, shortened, Forex Currency Prediction for 2008.

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John Drummond works from home. He writes often on business, trading, and finances. To read John Drummond's review of the 3 best Forex Trading Softwares, click here: Automated Forex Trading Softwares

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