Forex News for November 8, 2007
Itâ€™s official: the U.S. currency is in serious trouble. Uncle Sam is hurting. With the U.S. Dollarâ€™s constant losses against nearly all other major currencies, many traders are preparing themselves for the worst. Traders have been veering further and further from the U.S. Dollar and putting their money into other currencies. Individual investors are not the only one pulling away from the U.S. Dollar: China has gotten on board with this trend, too. Chinese officials revealed plans to reduce their holdings of U.S. Treasuries by 5% and diversify their foreign exchange reserves away from the U.S. Dollar.
China and individual traders are reinforcing the belief that the U.S. Dollar is losing its status as the world currency. Traders intent on sticking with the currency trend are leading the Euro, the Canadian Dollar, and the British Pound to new highs. The Japanese Yen is also enjoying the failing Dollar at this stage. The Yen traded higher than it has in nearly 3 months. Although there is some speculation that the Dollar may be bottoming out and could recover slightly, the Chinese news release and overall investor sentiment is that the U.S. Dollar has nowhere to go but down.
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