Excerpt from: Forex Forecast
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| December 30, 2008 | | Currency trading with the greenback | One of the speculations for 2009 is how the forex trading forecast will fall out for the U.S. dollar. In currency trading, the greenback has pulled back from its earlier rally, and things are looking a little bleaker than they were a couple of months of ago.
Right now, the only currency that the U.S. dollar is having any luck against is the Canadian dollar. However, there is hope that economic stimulus early next year might effect a more lasting U.S. dollar rally.
In actuality, the forex trading forecast for the U.S. dollar depends a great deal on perception regarding the recession, deficits and how traders view the fundamentals of the economy. The Forex Blog points out how perception might affect the U.S. dollar in 2009:
On the one hand, it is conceivable that the US will outperform (this
could translate into a milder recession) the EU and Japan, since the
Fed's interest rate cuts were implemented at such an early stage. On
the other hand, the US twin deficits continue to expand, which suggests
the possibility of long-term inflation as well as a potential
reluctance in foreigners to continue to lend to the US. | Topic Tags: Canadian dollar, dollar rally, economy, forex blog, forex forecast dollar, forex trading forecast, forex trading U.S. dollar, recession | |
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