Excerpt from: GFT News
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| January 20, 2009 | | Greenback higher as demand for safe haven currency increases |
Today, Barack Obama will be sworn in as President of the United States of America. There are, perhaps, few in American history that are burdened with the same expectations falling to Obama. And, as global recession mounts, he is likely to be seen as primarily responsible for the recovery of the U.S. economy. So it is with mixed feelings that the U.S. dollar strengthens in forex trading today.
Indeed, the U.S. dollar is gaining against the U.K. pound and the euro in forex trading, but this is due to a number of factors. Even Barack Obama has said that the U.S. economy will need time to recover, and this is providing reasoning for many that the greenback would make a good safe haven currency, since it will be some time before the global recession makes a turnaround -- and when it starts happening, the dollar is likely to be pre-eminent.
Another issue is that many hope that the policies that Barack Obama promises to enact will prop up the U.S. economy and provide for a secure future. However, this may not happen, since huge deficits are expected in coming years, and that is not the way to fundamentally support the dollar. As the global recession ends and the world economy comes back online in coming years, the dollar will likely return to weakness.
 | Topic Tags: Barack Obama, currency, forex trading, greenback currency, recession, safe haven, U.S. dollar, U.S. dollar trading, U.S. economy | |
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