USD Buoyed or Under Pressure

The fact that the US Dollar was under pressure over the last year is nothing impractical to say, with the debt crisis looming like a large kite over the financial sky of the Americans, clouding out the sun. Things have changed drastically over the turn of the year, with the debt crisis settled and the troops being moved out of Iraq and soon out of Afghanistan, defense budgets have also been cut. All of these had buoyed the US Dollar, which gained from the failing currencies of different regions and states that held sway on the forex trading markets earlier.

And early example is the Euro, which lost credibility and importance in the forex pairs market considerable after the debt crises fiasco – leading to several countries giving up hopes of recovery and waiting for bailout packages and financial grants (including Greece and Spain). Italy and Portugal are in deep soup too, and might drag other states financially interwoven into the Euro Zone structure down with them too.

The fact that the Asian currencies are buoyed with the help of a stringent financial structure bodes well for forex traders who were thinking of exploring the Asian and Australasian markets for a change. With Japan now looking to intervene, the only safer currencies are the German, the British and the Asian currencies.

The rest of the traders might not be interested, but if you wish to succeed, you need to ensure that every trading update is on your fingertips – right when the ball starts rolling!