U.S. Dollar Forex Trading Strategy

September 11, 2008 by Trader Rich

Greenback shows strength in currency tradingAfter showing some weakness early yesterday, the U.S. dollar has more than turned around, forcing through resistance levels against both the pound and the euro in forex trading.

Right now, U.S. dollar forex trading strategy should take into consideration the fact that the eurozone and British economies are both slowing down and are on the brink of recession.

Indeed, jobs data and news about Lehman aren’t enough to damp the greenback in currency trading, as the whole story has become one of growth differential, as Bloomberg reports:

“We’ve got this dollar strength for several weeks now that is driving currency markets and the fundamental picture is underpinning this,” said Lutz Karpowitz, a currency strategist in Frankfurt at Commerzbank AG, Germany’s second-biggest lender. “The euro-zone economy is going into recession. This is a growth-differential story.”