By James McKee
While the US employment numbers came up slightly in January overall they are still down for the year. However things might be looking up for the USD in February since there have been massive efforts geared towards re-establishing the manufacturing sector in the United States. If the US can begin to balance its imports with its exports the country may find itself on the fast track to recovery. If the United States continues its rampant importation of foreign goods with extremely low exports the USD will continue to suffer. Luckily the outcry in the United States for more jobs has been heard and some companies are heeding the call.
The re-introduction of manufacturing labor will have a large impact on the US economy if the concept continues to grow. Many in the United States would rather not do the type of work that manufacturing entails, yet, as the economy continues to wither it will be all that is available. The recent gains of the Yuan prove that an appreciated currency is inevitable where an exporting country is concerned. However at the same time the USD’s value may be purposefully devalued by the US in order to make their exports more appealing if the economy goes in that direction.
The push and pull of the USD could become severe if the United States feels a strong desire to make its exports as appealing as possible. This initial drive towards manufacturing could in fact herald an initial rise in the value of the USD if the idea catches on. Those on the forex currency exchange should keep an eye on the US manufacturing sector. Only time will tell whether or not the USD’s value will rise to coincide with the amount of manufacturing occurring in the United States. Due to the unemployment rate staying stagnant there will be a call for any type of job that pays, and the manufacturing market will answer that call.
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.