James McKee

The World Awaits US GDP Figures Anxiously



Posted: Sunday, May 22, 2011

by James McKee
http://www.forex.tradingcharts.com

With a shaky economy already in play the GDP of the United States as well as some large movers on Wall Street are really encouraging investors.  The LinkedIn “boom” has already garnered massive support via investment capital, causing the IPO to surge to twice its value in just one day.  If the GDP and NFP numbers prove to be in the positive than the United States Dollar is looking at some serious gains on the online forex exchange in the near future.  While this is a great prospect for many traders looking for a long position there is also the very real possibility of going short where the USD is concerned.

The prospect of a solid USD is good news for many nations including China who hold significant amounts of the currency in reserve.  The USD is currently being “bowed out” of the position as the world’s reserve currency, and while this concept is abstract to many outside of the financial world it will have catastrophic effects on the United States.  There is a very real chance that with such a troubled currency the United States could be looking at a good deal of trouble with regard to rising prices and all of the consequences therein.

Using and earning the strongest and most widely used currency in the world means cheaper goods and a variety of other perks; most people in the United States do not realize how good they have it.  By possessing a currency that is used the world over due to its strength and liquidity (with regard to trust) American citizens are granted a passport in the world of business with ease.  An end to this passport would be an to the way America does business, and as a result the world’s economy would have to adapt as well; what this adaptation will look like is anyone’s guess…

The author is a Forex trader and financial analyst residing in Denver, Colorado.  To stay up to date on all the latest developments in the financial world and beyond be sure to stay up to date with the latest forex quotes.
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