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Prognosis on EUR for 2011 year

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Forex market continues to fluctuate in a lateral range, but this is a temporary issue due to the season factors as it is expected in December.

In 2011 market will regain the trend, and it probably won’t be in favor of the European currency. There are too many problems that have been accumulated in the euro zone, which have not yet incorporated into the euro: the markets are now in a state of euphoria created by ejection of cash of the U.S. Federal Reserve, so after all factors will be founded in the currency price.

Additional prerequisite for the development of such scenario is a general overheating of the stock market, and perhaps it might cause the fairly significant correction, which only spur exodus of players in dollar assets, but it’s a middle-term scenario.

It’s also not smooth in the long-term prognosis. Problems of European countries should be solved by the launch of economic growth. However, regulators actually are aimed at holding the current position: increasing taxes, cutting budget deficits are expected to keep the euro at a high level for the higher period. Thus, while the growth of peripheral countries wouldn’t be launched, we can’t expect the strengthening of euro at the market.

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