Forex Trading Forecast: U.S. Dollar

September 23, 2008 by Trader Rich

Greenback to gain in currency tradingRight now, there is pressure on the greenback in currency trading. However, for the forex trading forecast, there is hope for the U.S. dollar in the longer term.

One of the reasons that things are likely to turn around has to do with a changing economic picture. As the banking bailout moves forward, it is expected to help the U.S. economy, and eventually support the greenback in currency trading.

Bloomberg reports on the likelihood of a change in the forex trading forecast for the U.S. dollar:

Short-term pressure on the U.S. dollar will subside as the government’s efforts to prevent a prolonged recession support the currency amid a slowing global economy, wrote Morgan Stanley currency strategist Stephen Jen. …

The currencies of countries participating in banking system bailouts since the late 1980s have not depreciated from the efforts, Jen wrote, citing the U.S. Savings & Loan Crisis, Japan during the early and late 1990s and Norway in the early 1990s.