U.S. Dollar Weakness Expected in Forex Trading
October 12th, 2010
U.S. dollar weakness is expected for the future, thanks to expectations of quantitative easing. The Fed is expected to announce QE2 on November 3, at the conclusion of its next two-day meeting.
As a result the greenback is starting to show signs of further weakness in currency trading on the FX market. This is because the whole point of quantitative easing is to weaken a currency. In times of economic difficulty, a weaker currency is preferred.
So, with QE2 supposedly on the docket, it is not surprising that expectations of a weaker U.S. dollar are moving to the forefront of forex traders‘ minds.
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