World First's Cook forecasts currency moves for 2011

Jeremy Cook, chief economist at foreign exchange brokers World First, gives his predictions for exchange rates in 2011.

Euro: 12-month prediction = 1.28 "The European problems which have dominated proceedings recently will continue in 2011. Structural issues in Portugal, Spain and Belgium will very much be in focus in the near term and the fear and uncertainty surrounding this will likely cause the euro to remain on the back foot throughout next year. Our 12 month prediction for GBP/EUR pair is 1.28 (0.7812 in EUR/GBP terms) and this is a fairly conservative estimate." Dollar: 12-month prediction = 1.74 "Further US dollar weakness for the next 12 months is likely as the Fed continues to spend ...