Disclaimer: Forex trading involves high risks, with the potential for substantial losses and is not suitable for all persons. The views expressed in this blogsite are those of the author(s) and do not necessarily reflect the official policy, position, or opinions of Global Forex Trading. Excerpt from: Forex Analysis
|  | | May 22, 2008 | | How will rising oil prices affect the dollar in currency trading? | One of the questions that many have right now is how oil prices should affect US dollar forex trading strategy. While oil prices and the dollar in currency trading normally move inversely to each other, there are a couple of ideas of how this might affect things.
Reuters reports on the different ideas regarding the oil prices and the US dollar in forex trading:
"People are in two minds about what oil prices will do for
the dollar," said Chris Turner, head of FX strategy at ING.
"It can lead to more diversification from central banks and
lead them to adjust their reserves out of dollars. But
stagflation...can also turn the focus of the Fed to deprioritise
growth and focus on inflation, increasing the prospects of
higher rates and a dollar supportive yield curve." | Topic Tags: currency trading, dollar currency trading, dollar forex strategy, forex trading, forex trading strategy, oil prices, US dollar forex trading | |
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