Which currency in 2011 has the best chance of coming out on top in the forex and why?
The forex market is a very volatile one and that is due highly to the forex determinants. This situation makes it very difficult to forecast the trend of currency movement. However, with relevant education involving the use of marketing tools, together with marketing analysis forex forecasting can be conducted to a reasonable limit; reasonable because no matter how exhaustive the analysis might be, it is still subject to factors that could change overtime to make nonsense of the previous forecast. So it is not surprising to see a well analyzed currency forecast disgraced by a last minute surprising market swing. In the spirit of forecasting, experts like the FFC, have put tools together to evaluate the market and releases a possible forecast for major currencies. Which currency will come out tops in the coming years is the question making the round in every financial trading forum, below is a discussion on one of the major currencies that may just rise to the top of the currency table.
Forex Marketing Determinant
The driving force in any thriving market is centered on the action of demand and supply. No matter how man tries to robotize the economy one fact is undisputed; there is a human face in any robotized attempts. With the highly technological base of forex trading the operation is hinged on a basic fact; the human determinant. Have you ever wondered why forecasting is not constant? It is because humans who are the major players have irrevocable changing taste. Therefore in discussing which currency in 2011 has the chance of coming out on top, major determinants will be expounded.
Economic factors: This consists of the economic policy of a country publicized by major banks and governmental agencies. Other economic determinants are: fiscal policies, monetary policy, budget deficits, interest rates, inflation etc. Another major determining factor to currency movement is the political condition.
Forex Trading and The YEN
From the above determinant one among the currencies that is speculated to stay on top in the coming year is the Japanese yen. Below is the forecast from the FFC (financial forecast center)
YEN FORECAST TAKEN FROM: FFC
Month Date Forecast
- Oct 2010 81.79 0.0 0.0
- Nov 2010 82.3 0.9 2.0
- Dec 2010 82.3 1.1 2.5
- Jan 2011 82.1 1.3 2.9
- Feb 2011 82.7 1.4 3.2
- Mar 2011 83.9 1.5 3.4
- Apr 2011 85.3 1.6 3.6
- May 2011 86.8 1.7 3.8
- Jun 2011 88.2 1.8 4.0
(Forecast as at 14 of November 2010)
The Japanese economy is said to be the third in the world and with advanced economic reforms and extension taking place it is set to enhance the currency, solidifying its place in the currency market. From the above table as of December 2010 the value of yen is predicted to be 82.3, at January 2011 it is expected to drop by .2, the next month it will regain it place and begin the gradual climb to 88.2 by June 2011.