Economic Stimulus Bill Now Law

Will economic stimulus help or hurt the U.S. dollar in forex trading?

One of the questions many are wondering about includes whether or not the economic stimulus bill signed into law yesterday will help or hurt the U.S. dollar in forex trading.

When considering the effects of the economic stimulus bill — and other stimulus measures that are likely to be enacted — it is important to consider the following:

• If the economic stimulus measures do work, it could mean economic growth for the U.S., and help for the U.S. dollar in forex trading — continued strength, even if the greenback is no longer a safe haven currency.
• On the other hand, the economic stimulus measures may actually hamper the U.S. dollar in forex trading. As the economy moves out of recession, focus may return to the fundamentals of the economy, which aren’t that great, considering all this stimulus spending is coming through increased national debt (most of it held by up-and-coming
  economic rival China).

Only time will tell which scenario — or a combination of the two — will end up carrying the day.

See Also

• U.S. Dollar in Forex Trading
  Currency trading on the FX market

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