It has been an interesting time for Forex trading online; even without any recent stellar economic news coming out of the United States, recently; the U.S. dollar continues to rise in value. As reported in Reuters on August 30, 2013, “the U.S. dollar rose to a four-week high against a basket of major currencies on Friday, helped by persistent uncertainty about Syria and a weak euro which fell after data showed benign inflation and elevated unemployment in the euro zone.”
The recent uncertainty with the U.S. response towards Syria seems to be having more of an effect on certain commodities like oil but not much impact on the dollar´s value for Forex trading online.
As John Canally, investment strategist and economist for LPL Financial in Boston, said there is “a lot of push-pull from the Syria thing – will they, won't they – and then the data… fits in the category of another soft report and it is going to give the Fed a problem because the economy is going to be weak and yet they are going to taper anyway.” The most recent economic data coming out of the U.S. has not shown much of a strong indication, one way or the other, on how the economy will be in the intermediate future.
But barring any strong economic news in either direction, most investors involved in Forex trading online will likely hold the course towards a gradual recovery and strengthening of the U.S. dollar. Ian Stannard, head of European foreign exchange strategy at Morgan Stanley, believes that “the dollar recovery trend remains in place, though we may see a pause over the next few days, [and] the underlying fundamental picture is still there and that comes down to a rise in global yields and a rise in the U.S. dollar that is still going to weigh on the more vulnerable currencies.” Since Forex trading online is trading of currency pairs, an increase in the strength of the U.S. dollar likely means it is strengthening against the trade value of another currency. For example, Reuters reported that “the Indian rupee has tumbled 10.4 percent against the dollar so far this month, and looks to be heading for its largest monthly fall ever.”