If you had to pick one word to describe the outlook for the world's major currencies heading into 2013, it would have to be "inconclusive."
Since late May, none of the leading currencies has managed to establish a prolonged trend, with choppy action being driven by continued economic instability in Europe, a sluggish recovery in the United States and slowing growth in the Far East.
Even the Japanese yen, which has been one of the strongest currencies the past few years and held fairly steady through most of the summer choppiness, has weakened in recent days in the wake of a slowing Japanese economy and falling export business, much of the latter blamed on the strong yen.
And the indications are the world's major currencies will likely stay that range bound for the remainder of 2012. Investors can expect price movements to be driven by short-term speculative reactions to each new economic report, unexpected developments in the U.S. election campaign and the continuing failure of European bailout proposals.
So, what's a currency-conscious investor to do?...