America is stretched beyond the tipping point financially and many state and local governments have begun instituting massive austerity measures in light of dried up Federal funding. The recent incursion in Libya executed by President Obama was executed without the approval of congress and many senators are irate. Many senators are upset with the President for not consulting them first, and having a clear idea of what the objectives are; at what point the US would give up if things did not go well. Check your forex quote carefully before entering into any trade involving the USD, if the US becomes any more enmeshed in the Libyan conflict it could spell out disaster.

The United States is simply not in a position to be as active a "police" force as it once was and this is a fact that the American people and politicians agree with wholeheartedly. The cost for executing these military actions is hitting home hard in the form of slashed benefits and social programs, among other things. State governments in places like California have resorted to cutting the state pay of workers by as much as 50-60% just to make the budget work. This sort of desperation will only become more rampant, dropping the USD on any Forex quote.

If the United States continues to bicker back and forth then it is almost guaranteed that further action will be taken by Obama without consent from congress. Congressional members need to stand up and insist that Obama abide by the laws and legislation in place that govern acts of war and seek out the approval of congress. Staying up to date with what the United States decides to do in response to further crimes against civilians by Gaddafi will be good for predicting future movements of the USD against other majors.