By James McKee
The US economy is on the rise and many are taking notice of the fact that US corporations and the stock market are both in extensive recovery. This has had considerable influence on a weak dollar, and allowed it to raise somewhat against the Euro. The USD has had some complications recently, and has fallen sharply against the Euro. This has not been a great time to invest in the USD on the online forex exchange, with the recent boost in US corporate earnings the economy may be on the rise.
The US dollar has never quite recovered since 9/11; however, President Obama’s stimulus money and other measures have helped the USD recover somewhat but it has a long, long way to go. The nation of America is in a tough position without its former production ability, and the added weight of several new burdens including an intervention in Libya. The entire US fiscal picture is not a bleak one; however, the United States has still not made the necessary budget cuts. All of the United States government has been in a deadlock attempting to hammer out a satisfactory budget to no avail. The amount of money trimmed from the US budget is so small that in all likelihood it will have no impact.
The Federal Reserve Bank has committed publicly committed to reinforcing the dollar and aiding the US economy for the foreseeable future. The Federal Reserve Bank aims to do this by keeping interest rates low and allowing debt levels to rise as high as they need to. The support of the Federal Reserve will help investors to feel more at ease when investing in US stocks or the US dollar, because they will both enjoy a slightly more stable environment thanks to the Fed.
Attracting investors is just part of the problem though, there is also the need to fix what has become a very broken budget in the United States. Roads and other items related to infrastructure have been being neglected and as a result commerce, as well as safety have been suffering in the US. The United States economy will only enjoy a temporary and faulty recovery if the budget is not changed significantly, there can be no recovery with the constant debt. The USD on the online forex exchange will continue to experience trouble until the United States government becomes a lot more serious about decreasing their debt.
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 online forex trading regularly.
