U.S. Dollar Stabilizes a Bit in FX Trading, But Uncertainty Could Be Ahead

November 20, 2008

Greenback could be getting ready for another surge in currency tradingThe U.S. dollar is showing some stability in FX trading on the currency market today. It has been fairly even the last couple of sessions, in a marked departure from recent volatility.

The greenback could be gearing up for another surge in currency trading, however. The Fed is looking to inject even more cash into the markets, and this could provide a catalyst for the U.S. economy by improving liquidity (and maybe combating deflation).

What the Fed is doing, however, is injecting an element of uncertainty that could cause some confusion. Additionally, the move could mean the end of the Fed Funds rate as the most important monetary policy-maker.

See Also

• Greenback in Currency Trading
  FX trading on the currency market

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