Although tensions remain high in the Middle East and Ukraine, the US Dollar is slowly pushing back, regaining critical lost ground against the British Sterling and Euro Dollar. Although a variety of 2014 peaks have already been met and exceeded, many experts are in agreement that the US Dollar will need a fresh and compelling impetus to continue its ascent. That being said, an increased in value of USD may comes as a result of international pressure on the EU as opposed to substantive gains on a domestic level.
The US is currently enmeshed in a variety of international conflicts that are causing many to re-assess their investments in the national currency. As Iraq continues to slip further into conflict and the ISIS militant group increases their volume of highly visible, violent demonstrations, many are left wondering what the full extent of US involvement in this conflict will be.
Meanwhile, the ongoing drama between Russia and the Ukraine is producing worldwide hesitation and fear, particularly in financial circles. Recent sanctions placed against the Russian nation are expected to result in an increase in pressure on the Euro Dollar, which, until recently, has been trading at nine-month lows. Although the EU has officially emerged from the devastating recession of recent years, the economic landscape of this region remains quite fragile. Whether or not the EU will be able to reassert their validity in the FX exchanges in the upcoming days and weeks has yet to be seen. Were the conflict between Russia and Ukraine to continue to escalate, it is highly likely that the EU Dollar will experience large price swings.
The GBP has also been experiencing its fair share of suffering, due largely to its association with the EU. For US travelers, this couldn’t come at a better time, as trips abroad will prove to be much more affordable than they would have been otherwise due to a strong US dollar.
As is common with FX trading, the volatile combination of international events taking place on a regular basis can quickly destabilize and reshape short-term expectations. Depending upon upcoming actions taken by the US Government, many believe that the US dollar is poised for increased volatility.