Why is the USD taking a beating in the Forex market? -

It has been losing ground to the Japanese Yen, Euro, and the British Sterling. What s the deal? When will this end? This is seriously screwing up my investment strategies. The USD dollar is having problems for a couple of reasons. First, there is concern over the status of the US economy in general. We have a war going on that continues to ring up a large bill that will have to be paid by the US taxpayers sooner or later. We have a gazillion and a half baby boomers moving into their quot;golden yearsquot; that is predicted to put massive strain on already questionable social security and healthcare resources. And we have an consumer base that was heavily leaning on housing appreciation as a stimulus for the economy. Now on top of that challenging set of circumstances we have an international community discussing the replacement of the USD as the primary trading currency in the foreign exchange marketplace. Remember all countries currently have to convert to USD to buy and sell oil and other commodities. What if this were to be slowly replaced with the Euro? or a new Middle Eastern currency like an Oily or some such? or what about the Yuan, rumor has it these guys are packing some serious weight these days. Couple all this with a US political machine which is more concerned with quot;he said.....she said....partisan politicsquot; as opposed to focusing on developing a sound economic foundation upon which our country can grow and self sustain......and you then have the most troubling situation for any Forex currency.....uncertainty! That being said the US still has a lot going for us. The USD is not going to implode over night (at least I hope not). I have most of my clients currently positioned in long term hedging strategies that will perform nicely whether the USD goes up or down. May all your guesses be good ones. Paul M3 increased over 8% last year. The reason the USD is dropping like a sorority girl at a kegger is because the government is making too many of them. It won t end because we live in a purely dept driven economy and you can not maintain the integrity of the dollar with no value base to back it up. Every other country can back their dollar value with concrete goods. Our manufacturing and production facilities have taken a hit or have been out sourced to other countries. Do not invest in anything that you can not see touch or feel or use on a daily basis or know that other people use. I will keep this simple, but there is MUCH more to it. The USA imports hundreds of billions of US dollars more stuff than it exports. This means that the imported goods are paid for in dollars. This encreases the supply of US dollars held by people in other countries. Simply supply/demand economics will force the price down in terms of exchange rates. Most analysts and economists think that the US currency will continue to get cheaper as time goes by. So much money is leaving the US that it is thought to be unsustainable, but it will likely keep currency down for a while to come. (My personal guess is 10-20 years, but that is my personal guess based solely on intuition) Best bet is to not have a strategy that depends on the US currency gaining ground against other currencies. The best approach when your investment strategies are not working is to change your strategies. More speculators have lost more money going against the market than in any other way. The whole concept of technical analysis is to go with the flow not against it. Investors might very well make money going agaist the flow, speculators will not. The deal is the double deficit; the U.S. as a whole runs a trade deficit, while the U.S.government runs a budget deficit. Both trade deficit and budget deficit are known to depress the value of a nation s currency. When will it end? When the U.S. government stops wasting money on wars... http://www.forexaim.com Hi, Who cares where the market is moving?... You should be prepared to any market movement and make profit independently is it moving accordingly your and/or experts forecast or quite the reverse. NOTE: Market is always RIGHT. Good luck! I think the short term reason is the rumor that BoJ will increase interest rate. Many carry traders are exiting their position. Long term reason is the huge current account deficit. US needs to import a lot more than it exports. Thus, it needs to convert more USD into other currencies. usd is in big trouble because the us abuse system is failing americans so they will be emigrating to africa china and australia soooon