Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

New Year’s Economic Resolutions

Economics / Financial Markets 2010 Dec 30, 2009 - 07:14 PM GMT

By: LiveCharts

Economics

Heading into the new decade, it appears as though some big changes could be in store for the economy, stocks and several other major financial sectors and investments. The dollar appears primed for a major upward move, which would effect the trend in many speculative investments including currencies, oil, gold, and more.


The state of the economy appears to be much better than it was heading into 2009 when recession was the hot button topic on Wall Street. Some analysts are suggesting the fourth quarter of 2009 could result in a four per cent growth in gross domestic product. Most agree the economy has bottomed out, with real estate and consumer spending among catalysts.

The dollar seems poised for a significant push for the coming year. Fundamental and technical analysts agree on this. The improving economy has caused some fundamental momentum and technical traders suggest the dollar has broken through support levels against most currencies and some commodities.

One Euro is currently worth $1.4339, well below its 2009 high over $1.51. Even more important for the near future, the Euro has shown little bounce from its current position. Most analysts are forecasting the dollar to reverse direction in 2010. This should be especially significant against the Euro and Pound which surged strongly against the greenback during 2009.

The dollar is also holding up fairly well against the yen after a brief tenure at historic lows against its Japanese counterpart. After touching down at 85.365 yen, the dollar is currently worth 92.61 yen and climbing.

The dollar and yen are an interesting pair going forward as the US and Japanese appear to be on similar paths toward economic redemption. They have also been in synch in maintaining lower interest rates, which goes against sharp gains in either currency.

Gold has been hammered against the dollar in the last few weeks of 2009 after soaring to an all time high of $1,218.25. One ounce of gold is now worth $1,092.60. Some analysts were recently suggesting $2,000-plus for gold in 2010. This seems hard to fathom if the US economy improves as is expected.
Oil also appears primed to take a hit after holding in the $70-80 per barrel range for several months. With supply and demand doing nothing to dictate higher prices and OPEC holding steady, an improving dollar should drive oil lower in 2010.

With so much on the horizon, it appears certain the first year of the new decade should give some direction for the medium-to-long term fortunes of many financial sectors.

Neil Kokemuller

LiveCharts.co.uk

Neil Kokemuller is an Associate Professor of Marketing at Des Moines Area Community College in Des Moines, Iowa, USA. He has a MBA from Iowa State University. He is also in house stock market commentator at Live Charts UK, where you can find real time charts and share prices .

Copyright © 2009 Live Charts

Please note: The information provided in this article is intended for informational and entertainment purposes, and not as advice for financial decisions or investments. Actions taken on the basis of the information shared is at the sole risk and discretion of the individual. Currency investment poses significant risk of loss.

Live Charts Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in