• Dollar Overcomes Major Obstacle
  • Dollar Overcomes Major Obstacle

    David Sumner | 09:35 | 01/11/10
    Not to focus solely on the events that are about to take place in the United States, it’s important to note that the Euro faces the decisions ...

Not to focus solely on the events that are about to take place in the United States, it’s important to note that the Euro faces the decisions to be made by its central bank. But if the Dollar moves, the Euro will react inversely.

The Bank of Japan has changed its meeting to this week in order to discuss the interest rate situation. This could affect investments and the trend the yen has kept lately. Given the country’s sluggish asset gains, the continuing credit issues and the government’s push for the yen to advance, it’s hard to praise the yen’s surprising performance.

In the meantime, we saw the Australian Dollar show promise as the U.S Dollar overcame a major obstacle with its GDP figures. Now all investors are keeping their eyes on what will take place with the Federal Reserve and the FOMC. The greenback has shown us the possibility of increased volatility and perhaps a commitment to a specific trend. But all this was dampened by the activities of the weekend which tapered off the Dollar’s liquidity. Still, we all await this week’s events.

Economists are skeptic on the U.S economy’s outlook and believe another stimulus could be on its way at the tune of $100 billion per month for perhaps six months. However, the consensus of important bank dealers is that it could amount to one trillion dollars. With that said if the Feds intend on keeping everyone happy, the greenback is in for a lot of trouble.

David Sumner is a freelance writer with a specialization in reporting on the world of finance. David holds a B.A. from the University of Maryland. Currently David is based in the U.S. but spends a good portion of the year traveling throughout Europe and Asia.

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