Forex Trading Forecast: U.S. Dollar

by Trader Rich

Greenback pulls back in currency trading
The forex trading forecast for the U.S. dollar is largely dependent upon how well efforts to revive the global economy work out. Since the U.S. dollar is viewed as a safe haven currency, it is no surprise that as risk appetite improves, the dollar will drop in FX trading.

Right now, even though the latest manufacturing data shows contraction, the real focus is on what other countries, from Britain to Australia, are doing to help stimulate their economies.

Also at issue are U.S. attempts to spur consumer spending. If the U.S. manages to increase consumer spending (which accounts for about 70% of the U.S. economy), then it will be a big step in starting the recovery from global recession — effectively erasing the need for the greenback as a safe haven currency in trading, and probably sending it lower.