USD trends upward as summer sets in

Summer is not usually an eventful time of year in the asset markets, and the forex market is no exception. Traders become vacationers, volume slows, and volatility declines. The summer doldrums notwithstanding, economists and investors expect the USD to continue on its upward course. The dollar will be buoyed by the inevitable fall in the price of oil as well as rising consumer confidence.  In addition, Alan Greenspan is expected to raise rates for the 9th consecutive time. On the other side of the Atlantic, political and economic uncertainty abound. Interest rates are low and heading lower.  Business and consumer confidence are approaching record lows.  All in all, the prognosis for the USD is most favorable. FXStreet.com reports:

"And that means that unless there is a reason to be trading (news event or economic statistic), activity will be subdued, although the dollar uptrend is still in place." said one trader.

Read More: Dollar firms broadly as oil prices ease