U.S. Dollar in Forex Trading

228747 Resource 119232 120646 120646 1237216668875 1237216668875 Controlled How Long Will Others Hold U.S. Treasuries?

U.S. debt becoming a concern on a fundamental level

One of the main concerns in terms of economic fundamentals right now is the attractiveness of U.S. government debt. Last week, the U.S. auctioned off large amounts of U.S. Treasuries, and they were rather popular -- even with low yields. U.S. government debt is still considered a "safe" investment. However, it may not remain a desirable investment. The biggest holder of U.S. debt is China, and <a href="http://www.forexblog.org/2009/03/central-banks-maintain-holdings-of-us-treasury-securities-but-for-how-long.html" target="_blank" title="Wen Jiabao, U.S. Treasuries, U.S. debt, U.S. dollar, dollar forex trading, forex trading, China invest Europe">Premier Wen Jiabao made it rather clear last week that his country may not continue buying up U.S. government debt</a>. Indeed, the announcement comes not too long after China announced plans to <a href="item/226776" target="_blank" title="Wen Jiabao, U.S. Treasuries, U.S. debt, U.S. dollar, dollar forex trading, forex trading, China invest Europe">diversify its investments into Europe </a>and into energy concerns. Clearly, China has other interests beyond supporting the consumerist needs of the U.S. Another problem is that U.S. Treasuries are flooding the market in order to fund economic stimulus efforts. Eventually, as risk appetite returns, U.S. assets will not be as desirable. And the fundamental fact of U.S. debt will make the dollar weaker going forward in forex trading. 9 application/xml false China invest Europe dollar forex trading forex trading U.S. debt U.S. dollar U.S. Treasuries Wen Jiabao U.S. Dollar in Forex Trading Currency trading on the FX market http://www.fx360.com/?aid=5704 Mozilla/5.0 (Macintosh; U; Intel Mac OS X 10.5; en-US; rv:1.9.0.7) Gecko/2009021906 Firefox/3.0.7 127.0.0.1 127.0.0.1 mmarquit 66.182.66.2 false true false false true 119232 blog blogsite/GFTForex/web