What is happening with the US Dollar?
One of the aspects that has recently dominated the Forex markets is the continued slide of the United States dollar in relation to currencies such as the Euro and the Pound. While much of this bearish momentum has been triggered by the brinksmanship recently played out regarding the debt ceiling, recent data has been just as damaging.
The primary reason for a negative short-term outlook was prompted by the recent non-farm payroll report submitted that displayed dismal job growth figures within the United States. In turn, this has caused online Forex investors to take a rather cautious approach to the outlook for the greenback.
This downward trend may signal that the Federal Open Market Committee will continue their accommodating stance into the future; further hampering any significant growth. Nonetheless, Forex trading may still be given a respite should the dollar continue to slide; investors hoping that lower levels of support will prompt a buy back and raise the strength of this currency.
With more of a long-term outlook, many online Forex traders are carefully watching the next debt ceiling which looms ahead. While this milestone will not occur until early February 2014, many analysts feel that the United States Treasury will have less breathing room than recently and should the political sabre rattling take place once again, the outcome could indeed be much different.
Notwithstanding this possibility, online Forex traders have been shaken by the fiscal policies of the United States government and until an appreciable amount of confidence returns, the dollar will most likely remain in a neutral to bearish stance in the eyes of many investors. Although some trading circles may view this as an opportunity to buy low and sell high in the medium-term, the majority still feel that the dollar has not reached appreciable levels of support. Thus, the overall outlook should remain the same into the near future.
