That’s the question on the minds of many traders in forex capital markets around the world. As the economic crisis began to unfold last fall, the dollar profited from aversion to riskier assets and posted record gains against some of its tougher competitors such as the GBP and the EUR. But now, as Congress debates President Obama’s new stimulus plan and the Federal Reserve considers buying treasuries, the USD could actually soften. It seems odd that the currency should depreciate as the economy rebounds, but it’s possible that as the U.S. digs out of the current economic black hole, traders will turn their attentions to higher-yielding but riskier currencies and leave the greenback struggling to post gains in foreign currency trading. Think the USD is about to find resistance? Open a demo trading account at 24FX.com and participate in our monthly forex contest!
