The Financial Forecast Center is a website that specializes in the creation of forecasts related to foreign exchange (money), investments, loans, finance, economics and employment.
While, as you might expect, the site disclaims any and all claims as to the site’s forecast accuracy the site has been around since 1997 and apparently uses a respected proprietary model to forecast over both short-term and long-term time periods.
Even if traders and market pundits are leery of the FFC’s forecasting ability the site is a good source of historical price information for many currencies, commodities, and other investments.
The Forecast Euro trend is Quite Interesting
The forecast for the euro is rather interesting. Prices are forecast to gradually increase from the current level of about 1.3400 to reach a high in February 2012 of 1.3860. From there prices abruptly drop in March 2012 to 1.3250. From there prices move over the next several months into the mid-1.25′s.
A forecast of this nature ties in rather neatly with reaction to the results announced by euro zone leaders at the conclusion of today’s Brussels summit. Stock and bond markets rallied substantially on the news and are likely to keep advancing as long as it appears euro zone members are making every effort to get the sovereign debt crises issues under control.
2012 Likely to be a Year of Recession and Turmoil in the Euro Zone as Austerity Measures Kick In
However, I expect that early next year, say March 2012 according to the FFC forecast, markets will start to reflect ongoing difficulties in the euro zone and the euro will indeed begin a significant downside move.
One technical feature that will likely support the euro over the near-term is the fact that market participants ( euro bears) have been lining up to sell the euro short expecting an immediate fall. With the euro stubbornly hanging in the mid 1.30′s even a mild advance is likely to spark short covering which will, all other things being equal, drive the euro higher. Of course, one problem in trading the euro and all other currencies is that all other things are never quite equal. Many complex factors affect the direction a currency takes over the long run.
The Financial Forecast Center website with the euro trend forecast is here.
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