Outrageous predictions

On Dec. 17, London-based Saxo Bank released their annual “outrageous claims” for the year ahead, an attempt to predict rare but high-impact events that could occur in the year to come.

Among the predictions for 2009 were that the EUR/USD pair could fall to 0.95 and then go as high as 1.30 as the European Central Bank attempts to deal with the economic troubles of its member states.

Saxo also predicts 2009 could see the first Asian currencies pegged to the Chinese yuan, and that Asian economies will “look toward China to find new trade partners and scale down their hitherto U.S.-centric agenda.”