There has been economic news coming from the United States to have a real affect on Forex online trading – with Fed Chairman Ben Bernanke´s testimony last week being the exception. And even Ben Bernanke´s statements in the last couple weeks suggest few changes and more of a wait to see approach on how the Fed will act (react rather) based on how the U.S. economy unfolds in the coming year.
“Fed Chairman Ben Bernanke told lawmakers last week the U.S. central bank still expects to start scaling back its massive bond purchase program later this year, but he left open the option of changing that plan if the economic outlook shifted.” as reported in Reuters. These types of statements help ensure long term stability for the U.S. dollar; however, for Forex online trading with the U.S. dollar it means that traders must be more attuned to the movement of currency paired with the dollar.
Brian Dangerfield (a currency strategist with RBS Securities) made the point, "In the absence of any economic news, positioning has been driving the FX market, [so the] market is still quite long dollars and in quiet periods like today, traders are scaling back their positions.” And Omer Esiner (chief market analyst at Commonwealth Foreign Exchange) made a similar statement about the current state Forex online trading “[being] more of a technical move in an otherwise very thin market amid generally soft data and questions on the timing of tapering.”
This means that Forex online trading at the moment is more based on reading the market movements than predicting or reacting to any market news. For the U.S. dollar, there is currently a long view being taken as “Analysts [say] the dollar would likely strengthen in the coming months against currencies such as the euro, sterling and the yen because the Fed is expected to be the first major central bank to make its policy less accommodative. But few anticipate the dollar's rise to be smooth” according to Reuters.
This is not to say that there is no economic news; after all, Forex online trading is done with currency pairs. Even if economic news is fairly quite in the U.S. there is still other economic news in other nations that can affect the trade value with the U.S. dollar; as stated in Reuters, “Investors are looking to flash Purchasing Managers' Index data on Wednesday as worries about euro zone economies are re-emerging. Analysts said there would probably be selling into any rebounds in the euro.”