Dollar Continues to Perform Well
Despite the inaction of the G20 summit the dollar continues to do well on Forex markets indicating the telltale signs of continuing risk aversion by Forex traders. The G 20 (Group of Twenty Finance Ministers and Central Bank Governors) met over the weekend in Washington to discuss the global financial crisis and what regulatory solutions could be taken to prevent future crises.
G 20 Promises Bold Action
The group, which met for less than six hours at the National Building Museum, promised bold action in several areas including increased oversight of financial markets, reform of the International Monetary Fund and the World Bank, and urged governments to implement fiscal policies to stimulate growth. The group left most of the difficult decisions for future meetings. A final statement issued by the group stated, “Against this background of deteriorating economic conditions worldwide, we agreed that a broader policy response is needed, based on closer macroeconomic cooperation, to restore growth, avoid negative spillovers and support emerging market economies and developing countries.”
Free Markets to Continue
Despite philosophical differences one of the only agreed upon conclusions was the continuation of free market capitalism. Brazilian President Luiz Inácio Lula da Silva called on the larger members not just to lend money as a band-aid to financial troubles, but to continue with policies which bolster growth and increase trade as a healthier solution to the recent economic crisis.
Dollar Rallies After Slight Decline
The US dollar is regaining its strength after a slight decline on Forex markets last week and continues to provide investors with Forex opportunity. The dollar continues to gain against the Euro which continues its decline on Forex markets. Forex traders have experienced volatile market conditions since the global crisis began and have been watching the G 20 summit with intense interest.
Dollar Gains Against Yen
The dollar has also gained against the high performing Japanese Yen in forex trading. The Japanese economy is in serious trouble and lower demand for Japanese products has caused the Japanese economy to contract and has affected the Yen in FX trading.
Forex Traders and the G 20
While the G 20 summit did little to calm troubled markets it is seen as a first step towards a global economic agreement. Uncertain economic conditions have caused Forex traders and investors to monitor economic data from around the globe with unprecedented intensity. The G 20 summit is only a small step towards stabilizing the global economy.
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