Now is the Time to Invest in the US Dollar

If you are an investor in the foreign exchange (currency or forex or FX) market now may be the time to invest in the United States dollar, or USD. For those that do not know, Forex is a market in which one currency is traded for another currency. The global Forex market and its related structures make up a market worth over $4 trillion dollars. With this in mind and the current economic climate, the right investment can potentially bring in high returns. With this in mind, now is the time to look into the USD.

Ever since the 1970′s the United States dollar has been following a consistent trend of 5-7 year cycles of up and down trends. In late 2001, early 2002, its value reached its high point when measured against the Euro. Since that time, it has been in a decline for nearly 6 years, just as the trend has been for over 30 years. With this in mind, it would suggest that the dollars time to rise in value again should be coming soon.

As a matter of fact, the dollar has seen gains in recent days. Since the middle of July the USD has gone up 8% against the Euro and 5% against the Japanese Yen. This comes as recent reports shows the European and Japanese economies going through an economic slow down and certain U.S. economic conditions improving, such as lower oil prices.

Based on past economic trends, it is time for the US dollar to begin its rise again. The upward trend in the pattern usually follows suit after the dollar hits the bottom. Last month it had reached a diminished value that was nearly half of its Euro counterpart.

When the value of the dollar is low, it makes American goods cheaper, therefore increasing the number of exports and shrinking the trade deficit. Two months ago, exports made its largest jump in 4 years. As business comes to America, investments in American mutual funds are up as well. The mutual funds that invest abroad has only netted $9 billion in inflows in the first 6 months of this year, compared to the $80 over the same period in 2007.

If you invest in Forex and the U.S. dollar, now may be the time to invest in it. The economic trend’s history shows that the dollar’s rise should be on its way and its recent gains in the later part of last month suggests that its comeback has already begun. While some are still questioning the economic conditions around the globe, you can take a risk and invest in the dollar. Its time is coming, if you get it early, profits can be satisfactory.