The U.S. dollar continues to be a safe haven for currency despite fluctuations in its value when compared to other currencies.
According to Reuters, the U.S. dollar had just fell earlier today, July 10th, from a three year high (when compared to a basket of other currencies) before a speech by Fed Chairman Ben Bernanke and the release of the Federal Reserve´s Junes meeting.
These types of events are exactly what investors involved in forex trading online will look for to take advantage of the speculation before such events that causes pivots in a currency.
It is also good to find expert opinions to get an understanding on how much or if there will be a rebound from the speculation once an event (like the news coming out this July 10th). For example, a foreign exchange strategist for BNP Paribas New York stated, "It is unlikely the Fed minutes will contradict expectations of Fed tapering, especially on the heels of last week's strong jobs data,"; which tells those involved in forex trading online that there will most likely be a rebound in the U.S. dollar shortly after the minutes of the Fed´s June meeting is released and after Bernanke´s speech later in the day of July 10th.
The U.S. dollar´s value on forex trading online is not just dependent on the news happening in the U.S. but is dependent on the financial world as a whole. Even if there is no real positive economic news within the U.S., the U.S. dollar will still be bought as other national economies show weakness. This includes even China, which has warned of a pessimistic outlook future trade levels after June exports surprisingly fell short that may show signs of economic slowdown in China, as mentioned in Reuters.
Despite this latest fluctuation of the U.S. dollar, it is likely that the U.S. dollar will again rise in value as investors continue to have a positive outlook for the dollar, according to Reuters. Investors on forex trading online will take advantage of these short cycle fluctuations, especially with stable currencies like the U.S. dollar since it allows for profit with low risk.