Excerpt from: GFT News
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| January 05, 2009 | | Greenback surges against euro in forex trading | The U.S. dollar is making solid gains in currency trading on the FX market this morning. The greenback is surging against the euro in forex trading as news of President-elect Barack Obama's economic stimulus plan inspires some optimism for the U.S. economy. Indeed, there is a certain amount of bullishness for the U.S. dollar right now, due to hopes for the future. (After all, no matter how bad things get for the U.S. economy, chances are that everyone else is worse off...)
Expectations that the U.S. economy could begin recovering in the latter part of 2009 are prompting a return to some risk appetite (albeit somewhat cautiously) and providing a reason for investment in some riskier assets. (U.S. stocks, however, remain mixed this morning.)
The main points that Obama addressed for economic stimulus include:
- Rebuilding America's crumbling infrastructure.
- Investing in renewable energy and technology.
- Tax cuts.
The first two items are meant to encourage job growth and stymie the growing unemployment rate. Job loss continues to help fuel the foreclosure crisis and contribute to lower consumer spending. The third item, tax cuts, are designed to provide more money for consumers so that they will spend it, turning the wheels of the economy.
| Topic Tags: Barack Obama, currency trading FX market, dollar currency trading, economic stimulus, euro forex trading, tax cuts, U.S. dollar, U.S. economy | |
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