Global recession might end - and the dollar weakens

Following signs that global recession might end, the dollar weakens to lowest rate of the year.
Once again, following optimism about an imminent global recovery, the dollar has declined, reaching its lowest level of the year (this is a common "symptom" in the forex markets, as the greengack is regarded as a "refuge", "low-risk" currency, preferred by traders and investors at times of uncertainty).

The Dollar Index, used by the ICE futures exchange in order to track its value against other major currencies was 78.22 on Friday, the lowest rate since December 18th. The index has dropped 2.3 percent in July.

As well, on Friday, the US dollar went down 1.3% against the euro. This was an outcome of a report that showed that the US economy has contracted in a lesser amount that expected by economists, indicating, MAYBE, that the global recession is coming to an end.

Another positive indicator is that the GDP of the US contracted "only" 1%, after shrinking 6.4% in previous quarter, the highest rate on the last 27 years, as reported by the Commerce Department.

Let's not forget as well the things that Ben Bernanke, the Federal Reserve Chairman, told Congress last month about maintaining a "highly accommodative" monetary policy, and his words to the Financial Services Committee about the economy making "tentative signs of stabilization".

What can I say, I do hope from the bottom of my [forex trader] heart that this time the signs are authentic and we are not talking about another false alarm, but even so, we, the forex investors will keep ourselves informed so that we shall know how to cope with every situation!