Dollar to Rise if U.S. Leads World Out of Recession

Now that U.S. Federal Reserve Chairman Bernanke has declared the global economy is beginning to emerge from its worst crisis in generations, the emphasis will be on whether central banks continue to work together to prevent a crisis like this from happening again or if each will take it own path to assure the path to recovery is smooth.

The initial reaction by traders to Bernanke’s comments on Friday was to sell the Dollar because of increased demand for higher yielding assets.  After giving it a little thought over the weekend, it appears that investors may be interpreting what Bernanke said a little differently and are buying the Dollar in the hope that the U.S. leads the world out of the recession.

Read full article at FuturesHound.com