Will the dollar strengthen over the next weeks?
In the latest round of online Forex trading news, most eyes are now focused on the federal government of the United States and the quantitative easing that the policymakers will take during the first months of 2014.
This is a direct result of the fact that Europe will remain comparatively quiet this month. So, traders will be looking to see if they can take advantage of what many feel will be a strengthening of the dollar in the weeks ahead.
Trading strategies will most likely centre around the rhetoric heard recently from the United States that reflects a “tapering off” of the QE3 policy in the near future. This is thought to be a continuation of the similar stance that the government took in December. So, it is highly likely that online traders will witness a slight spike in the volume of currency positions when Ben Bernanke announces what is thought to be a confirmation of this approach.
In other news, the Australian dollar and the Japanese Yen both gained ground in recent trading; displaying a correlation between their values and the price of United States treasury bonds. Many online analysts feel that this is a slight correction; both currencies are known to be directly linked to the actions of the American federal government.
While Europe will remain relatively quiet in regards to any major Forex trading news, online investors are still closely watching the fragile recovery of such economies as Spain. Many feel that it may be too soon to take a fully confident stance in the PIGS economies; domestic unemployment is still quite high and this purported recovery could easily slip back into the red. So, the euro is expected to remain rather weak in online trading and this may very well be an excellent buy opportunity for those looking for a long-term investment in relation to the dollar.