At this point the United States government is moving towards a new budget crisis that is approaching the troubles seen in the recently threatened shut down. This has created renewed concern for the US Dollar and the US economy at large, which makes for increasing pressure on the US government. A fractured Democratic and Republican party is not helping things at all, and in fact it is likely that this fractured system will continue to cause problems. There is not much to be said for where the USD is going on Forex charts, and this is despite a good deal of fear with regard to the European Union’s stability. Such bold moves being made by the US government to forsake the stability of the economy is a really big problem, and it is not lost on anyone.
The upcoming Presidential election is certain to cause further troubles here, and without solidarity within both parties there is not likely to be any resolution. By taking all of this into account a trader can gain much insight into what is coming within the market in the coming months. There is a real sense of instability in both the United States and in Europe, but for completely different reasons. While the European government is willing to institute austerity the people will not accept them, and the United States government cannot even get that far. This is something that needs to be evaluated on a day to day basis based on the reports coming in, and if at all possible by keeping up with that latest news releases.
By taking the time to appreciate these fundamental factors a trader dealing with the EUR/USD pair could easily be traded to make some pips. There just has to be proper money management in play, otherwise losses will of course stack up quickly. There needs to be a good amount of vigilance at all times when trading this pair over the coming weeks, otherwise there is going to be a lot of opportunity to lose money. Watch out for new announcements in both the US and the EU as time goes on in the near future, be sure to stay closely informed as to what is occurring in the news media. Taking the time to properly evaluate each signal will make it possible to make the right decision, whereas ignoring them will only serve to bring about a disaster.
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 latestforex quotes.
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