By James McKee – To be sure the current market is not a favorable one where the USD is concerned, this year’s G20 summit is sure to shake things up further despite recent prosperity in the DJIA. Doubts have risen regarding the US Dollar’s future and the recent uptrend, many traders believe the recent G20 summit points to further gains regarding the USD but I wouldn’t bet on it. The G20 summit of 2010 included with action taken to increase involvement of “emerging” economies in IMF policies, such involvement would go against the best interest of the US economy.
For the time being it looks as if the USD will be riding high on fictionalized pipe dreams in the Forex currency exchange, these “false” gains will likely rupture sometime in the next couple months. Until then I’m sure the coming fluctuations will total out to a hundred pips in either direction for the dollar, but nothing severe. The lesson learned here is that with enough propaganda and political maneuvering you can turn an elephant into a mouse and shove the elephant into a closet. What is ultimately important though is that the elephant grows, and it becomes angry and does it really make sense to put an angry elephant into a closet?
By continuing to deny the extreme issues the US economy currently faces and continuing to pile on the debt the US dollar is facing a blowout of epic proportions in the years to come. There was a time as a boy in school that I saw a picture of an Italian man in the 1920s with a wheel barrel full of Lira and I asked my mother “Did he just win the lottery?” “No he is going to the store to buy a loaf of bread.” Such facts put things into perspective for me as a child and they still do today, the value of currency is a very important thing to keep under control.
Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.