As every experienced Forex trader knows, the currency market can be affected by a large number of things from the country’s economy to the political stability of the nation. This is why it isn’t surprising that the Obama speech is something lots of Forex traders have been looking forward to hearing. Being one of the most popular men in the world, Obama’s speech will provide highly revealing information on the state of the dollar and how it will affect the United States future. Studies show that for the past few years, Obama’s speech followed a declining trend for the United States currency. Is this year’s talk going to be the same?
Situation of the Dollar
Right now, the dollar is still hitting an all-time low with less than hopeful signs of picking up again. Despite the obvious financial problems within the European territory, the EUR and other major counterparts of USD are still doing better. Due to the lower numbers, experts are wondering if this will be the trigger of a downtrend within the United States currency.
In comparison to other currencies – specifically the Euro – the dollar is still a bit behind. Even with the current European Central Bank problems, the Euro managed to enjoy a bit of optimism, allowing their value a small increment during the start of the week.
More recently however, is a fall in an overnight trade for the US Dollar and the Japanese Yen. This can be attributed to the General Election that happened in Greece. The election once again touches that fate of the Euro as the deciding vote was in favor of the main pro-bailout action. This alleviated any fears many people have that the indebted nation may suddenly be booted from the Eurozone.
Right now, the Dollar is a little better than what it was on Monday, value settling in at $1.2816 to 1.2790. Surprisingly, the US Dollar also managed to regain from a one-year low from the Canadian dollar.
Despite the overall bad trend and very little changes for the dollar, the outlook of analysts is still supportive especially with the current Eurozone situation.
The Greek Situation
The Greek’s recent election outcome definitely deserves some attention here as it puts the situation firmly on balance. The pro-bailout results have changed to market back to the status quo. Although a recession may still be imminent for the European nations, it will be a slow one instead of a sudden and destructive surprise. All the critical problems facing the Euro still stand and even the pro-bailout results from Greek will not help much in the recovery.
One of the few currencies that seem to be doing well is Japan’s Yen which is edging upwards against other major players in Forex. The JPY is currently at 125.15 compared to the British pound, 80.90 versus the Australian dollar and 99.85 against the Euro. As for the NZ dollar, the JPY stands at 63.30 and 80.05 against the Canadian dollar. Although slow in improvement, Japan managed to increase their Gross Domestic Product by 0.2%