Finance Related

Now that a new 2010 year began, we can think about how the Forex market will behave during this year. This article will focus on one currency, which is Euro. And we will try to predict whether this year is going to be good or bad for Euro.

Previous year was certainly a good one for Euro, because it has ended the year higher related to the US dollar than at the beginning of the year. But, as the new year started, the Euro depreciated and was further away from its high of 2009 and it seems like many traders have lost their infatuation to this currency.

This trend has continued in January 2010 and the currency pair EUR/USD price has fallen. It also showed the USD in a more favorable light than Euro. Now it is important to determine whether this trend is going to continue during the rest of the year. Many experts predict that this year will not be very strong for Euro. And there are a number of facts, which justify this prediction.

First of all, some countries, which are EU members, have certain financial troubles. There are countries, which are in the crisis mode right now such as Greece and Spain as well as even some bigger economies. All these economical problems are a real burden on the currency and which also cause a lot of uncertainty. And if there is an uncertainty in currency, the value is likely to get less.

Another fact, which influences the Euro prediction for this year, is the entire structure of the EU. European Union has countries with different economies and independent interests. That is why it is more difficult for the European central bank to set up the proper financial policy, which will help their currency to at least retain or even improve its value relating to other currencies.

The third factor is that the year 2009 was a hard one for US dollar, because this currency was under so much pressure. And Euro was in a better position mainly due to that reason. Now it looks like American economy is recovering from crisis and in the near future interest rates might also increase. These changes will help the US dollar and make the Euro situation worse.

All these facts lead to prediction that this is going to be a weal year for Euro. This information can help you make better trading decisions or not, depending on your Forex trading strategy. It is your decisions to make what currencies to trade in 2010. This is the prediction only for one of the currencies you can choose to trade and in order to be successful in Forex trading, you should pay attention to these factors no matter what currency you are trading.

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