Volatility Reigns in the Forex Market
by Rebekah Manning
If you ask a forex trader what was the theme of this trading week, the answer would be volatility. This is due to the question on many traders minds, ‘Will the US Federal government bail out Wall Street? ‘ As Congress debates on this topic, the US dollar has taken huge hits against major currencies like the Euro and the British Pound.
Fundamental analysis continues to be the driving force in currency moves. Looking at the ever shrinking liquidity credit market, we turn to how Washing Mutual has affected the US dollar. In the last 3 weeks, customers of the bank, Washington Mutual withdrew nearly $17 billion due to the banks credit rating being dropped to junk.
Once Congress stops bickering and trying to blame everyone but themselves for not properly regulating Fannie Mae and Freddie Mac and gets on with coming up with a bailout plan, we should see the US dollar stabilize.
About the Author - Rebekah Manning
Rebekah started in the Forex industry as an intern in 2001, and worked her way up the ranks to a C-level management position. She enjoys the field of trading as well as MMA fighting, shooting ranges, and action movies.
