To buy or not buy? That is the dollar question
This week the dollar will start another chapter in its race against devaluation in the forex market. US dollars have seen their value being decreased; an occurring trend for the last three months and that can be seen on online trading.
This is particularly worrying as America is facing external deals around the world.
China has signed a $22bn agreement with India and this clearly shows a new layout in the design of the international markets.
America has already started taking steps to counter attack this situation by approaching the Chinese. However the question here is: should we buy or sell dollars?
Well, here we are in a catch 22 situation. Online trading with dollars is interesting. Dollars are still seen as a very strong currency, but we would be very tempted to sell dollars, due to its current bearing trend. However, many great traders have made money by going against all the odds. Buying dollars would be the right thing to do according to some online traders as the market would pick up and would regain its former value.
The data that has been published this week is not particularly reassuring, however. The US has gone ‘soft’ which means that its relevance in the forex market will not be as influential as expected. Buying, then, clearly is a risky move for those who want to take the step into the uncertainty of the forex trading market.
Another aspect that will make a big difference in the value of the dollar is the fact that five prestigious banks will be fined for their misuse and deceit of foreign currency prices, one of them being the dollar. This is a factor that will sound like music to forex traders’ ears, as such measures will make forex trading a more transparent market.
