Questioning the Dollar

Many are now questioning how long the US dollar can continue its performance on Forex markets and how much longer the dollar can provide the Forex opportunities that it has in the recent past. As many issues continue to plague the US auto industry other aspects of the economy continue to falter.

Auto Execs Appear Before Congress

The executives of the ‘big three’

automakers appeared in front of the Senate Finance Committee. The automakers laid out plans to retool their industry and address the issues that have plagued the auto industry for decades. Although the bailout of the auto industry remains politically unpopular the failure of the auto industry could cost over 2.5 million jobs in an economy already rife with unemployment.

Calls For a Trillion Dollar Stimulus Package

The recent $700 billion stimulus package exceeded all previous records but now some are calling for a $1 trillion dollar stimulus package. The latest Beige Book report issued by the Federal Reserve shows a weak economy growing weaker. In almost all districts covered by the report the figures were grim.

Against almost all common sense the US dollar continues it’

s amazing levitating act on forex markets and continues to provide investors with Forex opportunities not available in stock and commodity markets.

US Economy Expected to Recover Quicker

Most economists expect the US economy to recover quicker than the economies of Britain, The Euro Zone, Australia, and Asia. At present the US debt stands at 350% of GDP. The US economy remains over leveraged and financial sector, household, and government have exploded in recent years creating unprecedented national debt.

Dollar Provides Safety

The dollar is being propped up by risk adverse investors parking their assets in the relative safety of the dollar. At some point in time, economic fundamentals will kick in and the dollar could see a disastrous downward spiral. Of course when there are losers there are bound to be winners and savvy investors will find forex opportunity in almost any situation.

Quick Forex Tip: The forex market offers investors the opportunity to profit even during a recession. If one currency rises another must fall creating constant opportunities for savvy investors to profit from currency moves. It is not difficult to learn how to trade forex currency and there are many very well written and user friendly learning programs and training courses available for free on the internet.  Besides training, the most important thing those who trade forex currencies must learn to follow political and economic news and interpret the results and the affect current events will have on forex markets.