By James McKee
The US dollar just does not seem to want to budge despite interventions and attempts by the Federal Reserve to stimulate the economy by pumping six hundred billion dollars into the US economy. Talks between the United States and South Korea are an attempt to stimulate an ailing US economy by increasing exports and raising the GDP. Talks however have broken down numerous times due to political tensions in America regarding free trade. A raise in GDP could signal an increase in the value of the USD on the Forex currency exchange. GDP is among the top indicators for currency value when it comes to any economy.
President Barack Obama visited South Korea in an attempt to start brokering a resolution to the current trade dilemma but was unable to do so. The goal of the United States president was to arrive at a resolution by the end of the G20 summit so that United States car manufacturers and beef producers could begin exporting it to South Korea. Such a deal if brokered has the potential to double United States export rates. Once the negotiations are completed and South Korea finds an amicable arrangement with the United States it will be single largest deal brokered by the US since NAFTA.
South Korean activists are very much against the importation of US beef due to a breakout of mad cow disease in 2003, at which time South Korea refused to import anymore US beef. This was a huge blow the US beef producers who have been making an effort to regain a presence in South Korea ever since. A re-negotiated agreement with South Korea would mean a large increase in US exports and this would in turn add considerable value to the US dollar. Traders in the Forex exchange should take note and keep a close eye on the USD.
About the Author
Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.
