In recent weeks the United States Dollar has come under increasing pressure from quantitative easing which is being used by the Federal Reserve. The act of creating more currency devalues all other currency of the same type thus doing a great deal of harm not only to America but to any country holding US dollars or treasury bonds. Many foreign countries who have invested in America in the past are becoming increasingly anxious about having their debts paid back and are beginning to pull away from America and its currency.
The American government are beginning to take austerity measures more seriously though, President Barack Obama recently proposed severe cuts to the income of Federal employees. Such cuts would more than likely only create moderate savings while having an overall negative impact on the economy from decreased spending power in many households. Such events would all probably have a negative impact on the USD in the Forex currency exchange and cause a drop in its value against many other currencies.
The United States Dollar is in real trouble right now and betting against it is a great idea in the Forex market right now with certain currencies such as the Euro. The Euro is a great currency to pair with the United States Dollar currently because the crisis with Ireland has been abated for the time being and so the Euro should experience temporary stability. The days ahead for the US dollar may be bleak but for traders this is a time of analysis and profit.