The outlook for the European currency is perhaps the worst since its introduction in 1999, as disparities among Eurozone members’ financial structure is likely to decline the appeal for the currency even further, since measures to bring budget deficits to the ECB’s target are likely to set several countries into a longer recession.
The U.S. dollar profited last week from a wave of uncertainty that brought investors to opt for safer bets in
The start of 2010 was rather grim for the European single currency as consumer confidence and economic acceleration decreased in the European Union, adding to the negative sentiment spread in markets but some of the bloc’s members raising budget deficits.
The U.K. currency may be experience a shift on its sentiment as speculations suggest that the current quantitative easing measures used by the nation’s central bank will be terminated, as the country starts to publish positive economic reports, suggesting that the recession may be ending in the British Isles.
After the SNB stated its position against further advances of its national currency, the Swiss Franc may be poised to decline versus main currencies, as fears of interventions are likely to shun investors from investing in the
The United Kingdom has been showing itself as one of the least resilient nations among the wealthiest countries in the world, and its weak economic data combined with a ineffective monetary policy is likely to set the sterling further down in the first semester of 2010, specially versus
The euro may extend last month’s decline versus emerging markets and commodity linked currencies as the economic recovery expected for the beginning of 2010 may rise appeal for riskier assets, damping demand for the European single currency in
The Australian dollar may start the year gaining against refuge currencies like the yen, and currently not so attractive currencies like the pound and the euro as a global recovery expected for 2010 may trigger stronger demand for commodity exports from Australia, favoring the national currency in
The European common currency may experience further declines in the beginning of 2010 against currencies like the Canadian and the U.S. dollar, as well as the Swiss franc, as concerns regarding the financial health among the bloc members fuel negative speculations in trading markets towards the euro.
As the market sentiment has shifted towards the end of this year’s trading session, emerging market currencies like the Brazilian real and the South African rand, which ranked among the top performers in currency markets, may witness a decline in 2010 versus wealthy nations’ currecies in process of economic recovery.
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