Currencies under pressure

The third quarter for currency traders looks to be another rocky one, according to Forex.com, which released its Third Quarter 2010 Markets Outlook today. A weak economy and troubles in the Eurozone are the usual suspects that will continue to hold the forex markets down. Analysts say the dollar will be the safe-haven currency as euro weakness will continue into 2011. The commodity currencies, the Australian dollar and Canadian dollar, should outperform, but are at risk if global recovery falls, according to the report.

China, which is still a major driver for worldwide economic growth, could come to the rescue, however. Forex.com reports that "additional fiscal stimulus in China may be a salvation to global recovery." The report also says interest rates in the U.S., U.K., Eurozone and Japan will remain on hold into 2011 and that oil should weaken on excess supply and stalling demand.

Comments
comments powered by Disqus