Excerpt from: Forex Analysis
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| January 29, 2009 | | Bad economic news sends safe haven demand for dollar higher |
The U.S. dollar is strengthening again in forex trading on the currency market. After softening yesterday on the prospect of an economic stimulus bill in the House, the greenback is gaining again in currency trading.
First of all, the economic stimulus bill is not considered "enough" by some. Goldman Sachs economists have called it a "first step." Additionally, economic data -- including unemployment numbers and home sales -- have been weak, leading to speculation that the U.S. economy is still in trouble.
And, since the U.S. dollar has decoupled from economic fundamentals for now, any news that's bad for the economy is good for the greenback in currency trading. So the U.S. dollar is gaining in forex trading as investors seek the protection of a safe haven.
| Topic Tags: currency trading, economic stimulus, forex trading, greenback currency trading, stimulus bill, U.S. dollar forex trading, U.S. economy | |
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