Excerpt from: Forex Training
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| August 31, 2010 | | Greenback in forex trading | It appears that slowing economic growth is likely to undermine the U.S. dollar going forward. Even though the greenback has been a safe haven currency in forex trading, it needs strong fundamentals in order to find support going forward.
Right now, that means signs of economic growth. Indeed, GFT's Kathy Lien reports in FX360 about the importance of economic recovery in helping the U.S. dollar in currency trading:
There is no question that growth is undershooting everyone’s
expectations and without additional stimulus, it could continue to do so
which is the greatest risk for the U.S. dollar.
Long term, though, there is a chance that all the stimulus could come back to haunt the greenback. After all, if debt gets out of hand, there could be other fundamental problems down the road.
| Topic Tags: currency trading, economic growth, forex trading, FX360, Kathy Lien, U.S. dollar | |
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