Forex Forecasts - Mid-Term and Long-Term Forex Forecasts

Actual Currency Forecasts from Leading Investments

EUR/USD Forecasts

 

Forecasts by:	Forecast made on:	Forecast Expectations	Valid for:
ForexStrategy Team	September 2006	1.34	December 2006
		1.27	April 2007
		1.21	August 2007
		1.28	December 2007

USD/JPY Forecasts

Forecast by:	Forecast Made on:	Forecast Expectations	Valid for:
ForexStrategy Team	September 2006	111	December 2006
		108	April 2007
		122	August 2007
		116	December 2007

GBP/USD Forecasts

Forecast by:	Forecast Made on:	Forecast Expectations	Valid for:
ForexStrategy Team	September 2006	1.95	December 2006
		1.86	April 2007
		1.80	August 2007
		1.88	December 2007

USD/CHF Forecasts

Forecast by:	Forecast Made on:	Forecast Expectations	Valid for:
ForexStrategy Team	September 2006	1.15	December 2006
		1.23	April 2007
		1.34	August 2007
		1.22	December 2007

 

ForexStrategy Team forecast for EUR/USD for 2007 made on Jan 3rd 2007
This year will be key year for the end of the upward trend of EUR/USD. We expect to see the last year with weak dollar. One of the most important indicator for the long-term forecasts are the level of the interest rates in the different zones in the case for Euro and Dollar are Euro Zone and USA. In the US the chances for significant rate cut are very low. We at ForexStrategy Team believe that during 2007 the Fed will leave the Interest rates unchanged at least to May. The chances for the rate unchanging for the whole 2007 are high or the Fed will make not more than 0.5% correction of the interest rates. If the direction is upward above 5.25% it will happens in the period of September – November. Otherwise if the Fed cut the interest rates it will happens at the end of 2007 with interest rate levels of 4.75% or 5.00% and then the dollar will remain weak reaching the levels of 1.40. In Europe the ECB will not act so fast how Fed action in 2006. The current level of 3.50% will change to the end of 2007. The analysis shows that we should expect ECB to raise the interest rates between 1 and 3 times for 2007. That means level of 3.75% to 4.25% at the end of 2007. The other key event that will move the dollar is the US Trade Deficit and especially the huge deficit with China. The last data for US Trade Balance was positive and there is moderate optimism among the investors. Focusing on the forex exchanging rates for 2007 we expect to see the dollar to take advantage against the Euro in the coming months. The dollar will be strong during the spring and again weak at the end of the year. But if the Fed raises the interest rates the recovery of the dollar in the spring months will continue. The key levels for the dollar will be the break above 1.3660. If that happens the levels of 1.40 and above are sure. In conclusion we expect dynamic year with movements into both directions. For the difference than 2006 when the dollar have almost one long-term direction and that was upward, partly neutral direction during Q3, the year 2007 will offer movements into downward, neutral and upward directions.

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