U.S. Dollar Forex Trading Forecast

by Trader Rich

Dollar expected to strengthen as bailout (finally) passesRight now, there is a revolt going on in Congress. After ostensibly reaching a deal on the 0 billion bailout, fiscal conservatives have forced the plan to stall. However, this isn’t bringing the U.S. dollar seriously down in the forex trading forecast.

The main reason for this is that the assumption is that at some point the bailout package will pass Congress. And when it does, many analysts expect it to be positive for the U.S. dollar, reports Bloomberg:

“We expect the dollar to gain more support upon a successful vote on the bailout package,” wrote Stamford-based Brian Kim, a currency strategist at UBS AG, in a research note dated Sept. 25. “Continuing foreign central bank demand for Treasuries will be dollar-supportive.”