By James McKee – No one seems to be very fond of actions taken by the Federal Reserve and there is little if any optimism for the US dollar or the US stock market. The DJIA has eaten dirt at this point at a loss of more than 200 points and will inevitably continue this downtrend into next week as banks are being told to go on the defensive. Many mortgage borrowers are beginning to retaliate legally against bad home loans by suing their lenders and are winning their lawsuits. The US dollar is going to have a very bumpy road on the Forex currency exchange in the near future.
The Euro however has been making gains in light of its austerity measures when compared to US spending sprees. They also received a boost when Ireland agreed to undergo more stringent measures in an effort to get its debt under control. Such willingness to tackle financial problems without pride and other irrational factors playing a role has been a hallmark of European economic recovery. However European citizens (especially those in France and Greece) have become enraged at the loss of various social benefits and programs due to the austerity measures currently in place.
However the United States is beginning to propose some very inventive and different ways of saving money such as a soda tax. Many state governments in the US have instituted a 6% tax on any items purchased which are packed with sugar (donuts, sugar, etc..). There is no doubt that many American citizens will complain about this however it is a small price to pay for economic relief. As the rest of the world’s concerns grow over mountains of money the United States citizenry and will be rising up for soda taxes. Indeed this could be a large part of why the USD is so unstable on the Forex market.
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.
