June 17, 2009
Currencies Add comments
US dollars perhaps? Or could it be the Euro dollar? How about asian Currencies?
well, us dollar has been weakening for sometime now, i guess you could speculate on a reverse in the mid-term future, especially if the us economy gets back on track and govt doesnt have to print out so much money.
June 17th, 2009 at 10:44 pm
There is no reliable method available to forecast exchange rates. Paul Krugman and Maurice Obstfeld write in their book "International Economics: Theory and Policy" (New York, HarperCollins:1994): If exchange rates are asset prices that respond immediately to changes in expectations and interest rates, they should have properties similar to those of other asset prices, for example, stock prices. Like stock prices, exchange rates should respond strongly to "news," that is, unexpected economic and political events; and, like stock prices, they therefore should be very hard to forecast. In a study by Richard M. Levich ("Evaluating the Performance of the Forecasters", in: Donald R. Lessard, ed., "International Financial Management", New York: John Wiley:1985, pp. 218-233) in which he surveyed the track record of a dozen exchange rate forecasting companies through 1982 he found little evidence that professional forecaster do systematically better than an individual who, for example, uses the three month forward rate. That does not imply that forward rates are good predictors. In fact, they usually do not predict exchange rate movements very well.
References :
http://www.tradeforex-investment.info
June 17th, 2009 at 11:01 pm
I would say that commodity based currency will rise in the future. I like Australian Dollar ands Canadian dollar too.
References :
June 17th, 2009 at 11:19 pm
well, us dollar has been weakening for sometime now, i guess you could speculate on a reverse in the mid-term future, especially if the us economy gets back on track and govt doesnt have to print out so much money.
References :