Forex Trading Forecast: Dollar/Yen

November 19, 2008

U.S. dollar set to gain in currency tradingRecently, the only currency that has been giving the greenback trouble in FX trading has been the Japanese yen. However, the forex trading forecast for the dollar/yen shows that things may be changing.

Right now, due to risk aversion, the Japanese yen has been gaining against the U.S. dollar in currency trading. Another issue is that the U.S. has been cutting interest rates to a point where they are getting closer to Japanese rates.

All that could change, though. Bloomberg reports that some analysts feel that the U.S. will start raising rates again next year, and that the interest rate differential will be enough to help the greenback overcome the yen in FX trading.

See Also

• Forex Trading with Dollar/Yen
  Currency trading on the FX market

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