This week, the US Dollar has been losing its strength on the Forex Market. Although this may sound like bad news to those of us who are heavily invested in the US Dollar on Forex, it also brings slight news of a positive relief for the US economy. European stocks remain in uncertainty, but are slowly relieving the pressure surrounding the tense Eurozone market in the past couple of days.
In the United States, Jobless claims data is showing increasing signs of improvement, with the number of new claims down to 338,000. The housing market is also showing strength, and is breaking expectations due to the drop In home inventories. All of these factors are adding up, and are resulting in signs of risk appetite increasing on the Forex Market.
In the International Forex Market. The Japanese Yen has surpassed the US Dollar, and is gaining strength. The Euro is currently struggling, but is maintaining a relatively steadier course than last week. The pound is relatively docile currently resting at a fairly high rate, and the Canadian dollar is gaining ground against the US Dollar, soon to surpass it.
This news of the United States Dollar doing poorly on the Forex Market does, in fact, mean that the US Economy is headed for improvement. The rate and degree of improvement will depend on the next coming year, but it is currently showing positive signs, and that is already a hopeful chance.
In the next coming weeks, it will be important to monitor trends in the Eurozone, and be aware of the possibility that the Euro will once again, become unstable. If something of the sort will happen, the US Dollar will regain its strength on the Forex Market.
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