The U.S. Forex Outlook is extremely volatile and a novice investor might get flustered with the volatility and suffer huge loss The US Dollars are expected to experience short-term downfall as Fed rate climbs. The whole economy is dependent on feds withdrawal of motivation and how the tightening cycle hits the US recovery. It is evident that the US economy will shrink in the second half of 2010 but for the month of March 2010, the stability is expected. Forex had been attracting a lot of players in U.S. market from stocks, bonds and commodity markets but recently the trend has changed and people are hitting back to gold investments and stock market. The interbank trading has also been rough for a past couple of months. The sheer size of forex market is now going bearish and the Fed, instead of tightening policy should give a break to the still recovering U.S. Economy.

The euro outlook remains unattractive against U.S. dollar and emerging market currencies whereas the regional single currency is in a financial situation far from an acceptable level to attract investors. The Euro will plunge till the end of April whereas UK Pounds will be stable in long run. The right time to invest in Euros will be the month of April. EU nations are at risk for debt downgrades. Uncertainty about sovereign debt risk in the EU will generate concern about the stability of European Monetary Union and the credibility of the EUR making the EUR less attractive as an alternative reserve currency to the U.S. dollar. The UK AAA debt rating is at risk if the UK government does not take credible action to reduce its debt.