By James McKee
The United States Federal Reserve bank set aside hundreds of billions of dollars to assist ailing companies such as General Motors who were in dire straights a few years ago. These bailouts cost the taxpayers in America dearly and also motivated the American government to lower the interest rates on its bonds in an attempt to encourage foreign investment in America. This devalued the US dollar by leaps and bounds in the forex currency exchange and continued the philosophy of betting against the dollar to gain profit.
While the Federal Reserve and other US financial institutions have made efforts to stabilize the US economy and its currency for the last several years and have been afforded very limited success. The most recent move on the part of the US government to pull its interest out of GM from 50% to 35% represents a very poor ROI overall. It was a failing investment from the get go, and that is why the US dollar continues to suffer despite efforts by the government. By taking these events to heart from an investment perspective the US dollar certainly comes across as a losing investment by anyone who cares to analyze it.
The Forex currency exchange is currently experiencing massive fluctuations due to the recent G20 summit and the perceived change it supposedly brought about. Many traders have noticed a renewed devaluation of the yen, a re-vitalized sterling and other interesting developments as time goes. Certainly there are other factors in the movement of these currency values but one thing is certain: things have been shaken up. It has never been a more exciting time to be a trader, paying attention to what’s going on in the market and getting in on the right pair at the right time can produce massive profit. Happy Trading!
About the Author
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.
