U.S. Dollar Forex Trading Forecast

The U.S. dollar forex trading forecast calls for eventual weakness as the global economy recovers from recession. But the short-term dollar forex forecast tells a different story. With recent developments, it's likely that we will see some measure of dollar strength for a while longer.

Bank concerns encourage flight to safety

Today's big news is that the banking sector is once again leading a flight to safety. UBS is leading global banking concerns lower in stock markets around the world. The UBS problem is one of investigation due to tax evasion, but it is nonetheless contributing greatly to the general flight away from banks.

As concern about the global banking system mounts, there is a move to invest in safe havens. The U.S. dollar is one of those, and for that reason is increasing in popularity in currency trading. Indeed, currency investing has been about the fundamentals for quite some time. And as long as the currency market is about fear, the U.S. dollar should continue to see strength in forex trading.