By James McKee
The response to America’s fiscal crisis in the private sector has been surprising; across the board manufacturing has actually increased. Large companies such as Ford have expanded their factories to include increased production and an increase in the number of people they employ. The slumping US unemployment rate can only benefit from moves such as these being made by large companies. The non-farm payrolls have a direct impact on the value of currency because when a country has good unemployment numbers and high levels of income they will spend more. This is much more attractive to investors and will increase the value of the USD.
Provided that US jobs continue to emerge from the ashes of an otherwise bleak economy the USD may yet have some legs to run on in 2011. While America is still an out of control debt machine the income necessary to pay it off may just make the difference that is necessary to boost the value of the USD. All of the jobs available will not be appealing to Americans because some of them will not pay well but it is up to the individual working to decide whether or not they should take a manufacturing job.
Much of America’s infrastructure is not set up to accommodate export but more so importing. The shift will be difficult for many Americans to adjust to and could spell out a new phase of American labor law making. Such turbulence could spell out trouble for the USD in the long run and those on the forex currency exchange should stay up to date on this situation. Failing to stay up to date on the employment situation in the United States would be foolish because it is one of the strongest indicators available for the value of 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.
