Forex prognostications for 2006

摘要

As 2005 closes, the world is in an economic balancing act trying to sustain global growth and at the same time correct imbalances in capital flows. Global growth results in positive sentiment, but when it is based on unsustainable consumer debt, sentiment can quickly abandon a currency for safer havens. Looking ahead to 2006, global growth rates and interest rate differentials are driving factors that will shape the contours of trading opportunities. Most recently global growth is projected by the World Trade Organization to have slowed down. As we end 2005, U.S. growth remains robust and as a result the Federal Reserve Board and chairman nominee Ben S. Bemanke are likely to remain focused on inflation by continuing to raise interest rates.