Excerpt from: Forex Forecast
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| September 26, 2008 | | Dollar expected to strengthen as bailout (finally) passes | Right now, there is a revolt going on in Congress. After ostensibly reaching a deal on the $700 billion bailout, fiscal conservatives have forced the plan to stall. However, this isn't bringing the U.S. dollar seriously down in the forex trading forecast.
The main reason for this is that the assumption is that at some point the bailout package will pass Congress. And when it does, many analysts expect it to be positive for the U.S. dollar, reports Bloomberg:
``We expect the dollar to gain more support upon a
successful vote on the bailout package,'' wrote Stamford-based
Brian Kim, a currency strategist at UBS AG, in a research note
dated Sept. 25. ``Continuing foreign central bank demand for
Treasuries will be dollar-supportive.'' | Topic Tags: $700 billion bailout, Congress, currency trading, forex trading forecast, U.S. dollar, U.S. dollar forex trading | |
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