Why is the USD Getting Stronger?

It has been about 4 months since the USD began appreciating with no apparent stops, and several of our traders are finding themselves a bit confused in light of these radical changes.
Let’s try to understand what the main reasons are for this turn of events, and also a special bonus – how you can predict sharp reversals using technical measurements.
Well first, let us understand something. When you hear on the news that the Dollar is gaining strength, it usually mean that the EUR/USD pair is sliding, as this pair is the main gauge for the two leading currencies. Many of the other pairs are acting in accordance simply because the EUR/USD has a heavy impact on the other currencies. However, the USD/JPY cross is a great example that the USD is not appreciating at all fronts and that its strength is still limited.
There are two main factors that are raising […]

Original post by Forextvblog

This entry was posted on Thursday, November 20th, 2008 at 8:57 am and is filed under USD, forex. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.