The Dollar Drops
Forex Traders and Trading Partners of the USA are losing their confidence in the US Dollar. This was expressed in the Forex Market last week. The bearish trend of the US Dollar was intact. The US Dollar continued to be traded at its lowest with the majors and in some cases it was at its lowest since October, 2008. The US Dollar continued its decline against all the major currencies.
- The US Dollar slipped to 1.5900 against the Pound, touching its October level.
- The Dollar reached $1.4030 against the Euro, the weakest level since January the 2nd..
- The Japanese Yen touched 93.86, the strongest level since March 19th..
- The Canadian dollar advanced to C$1.1205, the strongest level since October the 9th..
- The New Zealand’s Dollar climbed to 62.38 U.S. cents, the highest since October 21st..
- The Australian Dollar reached 78.67 U.S. cents, the highest since October the 2nd..
The fall is said to have started on March 18, when the Fed announced plans to buy up to $300 billion in U.S. government debt to keep interest rates low and stimulate the economy.
There was no change in the bearish trend of the US Dollar and technical analysts are expecting the decline of the US Dollar to continue in the short term.
Low Confidence in the US Dollar
There are several statements and expressions reflecting the loss of confidence in the US Dollar.
Brazil and China are negotiating to use their own currencies in their trading. This should be seriously taken as an expression of no confidence in the US Dollar and the US monetary policy.
Other statements on the ebbing confidence of the Dollar are as follows:
The U.S. will “eventually” lose its AAA credit rating.
Bill Gross of Pacific Investment Management Co. Reported by Bloomberg.
The credit-rating story is bubbling to the surface.
said Alan Ruskin, head of international currency strategy in North America at RBS Securities Inc. in Greenwich, Connecticut. Reported by Bloomberg.
Apparently, there is a growing concern on deterioration of the U.S. creditworthiness and near-zero borrowing costs. The increase of purchase of assets by Fed caused the financial markets to deteriorate further.
[...] Original post by Forex Trading Guide [...]
Hi!
It is interesting to note China’s position and efforts in dealing with the dollar as they are a growing giant and will remain as a major player for years to come by.
Thank you for your updates.
Cheers.
Zeus’s last blog post..Miley Cyrus – The Climb
[...] Original post by Forex Trading Guide [...]
Again there is talk of China’s position in the dollar (now $2.5 trillion!) and what they will do. They are no longer buying long term treasures and only short term. I think they will begin diversifying their reserves but this will take years to complete.
Dear,
This blog is layout very beautiful and attractive and in this blog have wide range information.And many things information here.
Best of luck for next
Thank You for the Compliments.
US Dollar will get his strength back. Nice website and nice article. Thanks
Great information, I will be linking back to you and going to look around at your other posts.
This is a great post. Thanks for the useful pointers.
its really hard when dollar rate has gone low, its hard to do business, but thanks to this article it really did show a great tip
Shaz’s last blog post..25 Unique Hand Picked icon Designs
its really hard when dollar rate has gone low, its hard to do business, but thanks to this article it really did show a great tip… thanks for sharing…
Shaz’s last blog post..25 Unique Hand Picked icon Designs
The Dollar is low now but be on the look out for its recovery.
Glad that you like it. Most people are not able to accept the reality that the confidence on the US Dollar is eroding. But there will be a turnaround.
I don’t know but it does seem like the USD is gaining some more strength. At the very least it seems to be at a turning point with traders pushing one way or the other.
I agree with you that the US Dollar is gaining strength. It’s because Russia have expressed their confidence in the Dollar and my abort their idea of replacing the US Dollar as their trading currency. The US may have worked their way to get the Russian support.
Watch out for my next posts on the US Dollar, China and the Recession. It should be out next week or sooner.
It’s a cycle!
Excuse, I have removed the question
I have been following up on this blog for a while and i find it very impressive. I plan to add it to my favorite.
Well, if you like it, just add it to your favorite. Give me a technorati fav too and stumble it as well.
Bravo, this magnificent phrase, Low Confidence on the US Dollar is necessary.
Thanks for your comments on my Forex Trading Guide.