Global Markets Decline, Boosting U.S. Dollar in Currency Trading

October 10, 2008

Greenback up against the euro in forex tradingIt’s been a bit of a wild ride. Okay, it’s been a lot of a wild ride. And we’re not done yet. Even with frantic efforts by various governments around the world to stem the rising tide, things seem to get worse.

As global markets decline, the U.S. dollar gains in currency trading. Once suffering from weakness, it is apparent that even with the U.S. economy in its current state, the greenback is one of the stronger currencies on the FX market right now.

Against the euro in forex trading, the dollar is gaining ground again after a very brief respite yesterday. And CNN Money reports that recession is considered all but a foregone conclusion for the eurozone:

"The winds of recession we portended last month have transformed into a full-blown storm spreading across the (European) continent," said Aurelio Maccario, an economist with UniCredit.

"No banking system and no economy appears safe, and it is now common belief that a recessionary scenario is in the cards also for the euro area."