225742 Resource 119232 120646 120646 1233936043826 1234301379318 Controlled U.S. Dollar Falls on Speculation About Safe Haven Status

Optimism about the economic stimulus bill sends greenback lower in forex trading

<br /><font size="2"><span style="font-family: verdana,arial,helvetica,sans-serif;">The <span style="font-weight: bold;">U.S. dollar appears to be pulling back from its recent strength</span> in currency trading on the FX market. One of the main reasons that demand for the greenback is waning in forex trading has to do with its <a title="U.S. dollar, forex trading, greenback forex trading, currency trading, safe haven currency, dollar safe haven, economy, recession, gold U.S. dollar" target="_blank" href="http://www.bloomberg.com/apps/news?pid=20601083&amp;sid=aREto4A7TiFw&amp;refer=currency">popularity as a safe haven currency</a>.</span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /><span style="font-family: verdana,arial,helvetica,sans-serif;">One of the side effects of the <span style="font-weight: bold;">global recession</span> (including the economic troubles in the U.S.) has been that traders have been demanding greenbacks as a stable, safe haven currency. Even as news about the <span style="font-weight: bold;">U.S. economy</span> continued to worsen, the dollar gained ground as traders sought to protect what they could.</span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /><span style="font-family: verdana,arial,helvetica,sans-serif;">Now, though, there is some optimism that the current <span style="font-weight: bold;">economic stimulus bill</span>, with its massive spending and measures designed to get Americans spending money again, will actually accomplish its goals and get the U.S. economy moving again. This should bring focus back to the underlying<span style="font-weight: bold;"> fundamentals of the economy</span>, highlighting U.S. government debt, as well as increasing risk appetite for other currencies.</span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /><span style="font-family: verdana,arial,helvetica,sans-serif;">Another interesting side effect: As probable inflation sets in, this could means that the interesting (and unusual) congruence between the <span style="font-weight: bold;">U.S. dollar and gold prices</span> may be ended -- restoring the dollar-gold relationship to one of opposite movement. Additionally, it is possible that the <a title="U.S. dollar, forex trading, greenback forex trading, currency trading, safe haven currency, dollar safe haven, economy, recession, gold U.S. dollar" target="_blank" href="item/224828">relationship between the U.S. dollar and the stock market</a> may mellow as well.</span></font><br /><br /> 9 application/xml false currency trading dollar safe haven economy forex trading gold U.S. dollar greenback forex trading recession safe haven currency U.S. dollar Forex trading with world currencies http://www.gftforex.com/land/index.asp?aid=446 <!--SocioFluid--><script type="text/javascript" src="http://www.sociofluid.com/sf.php?widget=124320-000103040b0d0e1011"></script><noscript><a href="http://www.sociofluid.com/">SocioFluid</a></noscript><!--SocioFluid--> <script type="text/javascript" src="http://tools.tipd.com/evbs.js"></script> <script type="text/javascript"> evb_url ='http://forex.gftforex.com/public/item/225742'; evb_big(evb_url); </script> Mozilla/5.0 (Macintosh; U; Intel Mac OS X 10.5; en-US; rv:1.9.0.6) Gecko/2009011912 Firefox/3.0.6 127.0.0.1 127.0.0.1 mmarquit 66.182.66.2 false true false false true 119232 blog blogsite/GFTForex/web