Dollar Still Strong

The dollar still remains strong against most major currencies and continues to provide Forex opportunities in the global economic slump. How long this will last is anybody’

s guess as dismal economic data continues to flow from the US. The three major automakers are back in Washington asking for $34 billion dollars in bailout money.

Automaker CEO’s Meet With Senate

The CEO’

s of the three major US automakers will meet with congress for a second round of bailout talks. Congress denied the first bailout request from the automakers but asked them to return with plans detailing how the bailout money would be used. The failure of the automakers would be a catastrophic economic event according to many economists and would result in massive unemployment.

Data Points to Recession

Almost all economic data from the US points to a recession, bailouts or not, but the US dollar has done amazingly well in forex online trading. The massive unemployment that would be caused by the failure of the ‘big 3’

would have a massive impact on the global economy and could possibly send the dollar into a tailspin.

Bailout Remains Uncertain

The fate of the automaker’s bailout remains uncertain. Many in congress oppose the bailout plans and among the public bailouts are unpopular. Part of the new bailout proposal would cap executive pay and bonuses, eliminate ‘golden parachutes’

in an attempt to make the bailout more palatable to the American public.

Bailouts New to the US

Bailouts and the partnership of government and industry are something relatively new in the US. The US has long considered itself a bastion of free enterprise and many consider bailouts as a form of socialism. How this will affect the performance of the dollar on Forex markets is anyone’

s guess. At present the dollar is the currency of choice among investors and continues to provide forex opportunities.