It is no secret that the US dollar is at an all time low because there has been so much press on the subject in recent months. It does not take forex information in abundance to work that out. Although recent levels of over $2 against the pound are by no means alarming dips because it has declined steadily over the last few months, the fact it has reached an all time low is especially problematic for the global economy give that the currency was introduced in 1785.
In terms of fx currency trading and the foreign exchange market, the US dollar is incredibly weak at the moment. Not only has the level of the dollar fallen dramatically since 2002, but it has also fallen below the Euro, Australian dollar, British pound and Canadian dollar in that time. There are a number of factors that have contributed to the dollar’s low on the foreign exchange market, but none of them look good for the economy in the immediate future owing to persistent inability, which has in turn provoked much forex information for those that have invested and could be potentially affected by the market instability.
Between 2002 and 2004 alone, the US dollar fell by over 10% and has fallen further since. Some experts insist that the dollar is not in jeopardy because it is still the world’s biggest currency in terms of trade and the country itself attracts foreign investment because growth still remains relatively strong, despite the apparent weakness of the currency at the moment. This is why investors still participate in fx currency trading with the dollar. However, the major worry is that investors will soon become so worried about the global economy that they will begin to pull their input. Although unlikely, this could potentially leave the dollar in dire straits.
The US has much in common with many of its strongest counterparts at the moment in terms of high and rising interest rates, an active business base that can attract foreign interest and unstable political values. The fact that the foreign exchange market in general is experiencing significant fluctuations means that the US is not alone in experiencing instability. As such, commentators believe that it is only a matter of time before the US dollar, and thus the price of gold, picks up. When it does, there are a lot of people that stand to make a lot of money!
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