The U.S. dollar is gaining in currency trading on the FX market this morning, rallying handily on the latest political news.

In forex trading, the greenback has shrugged off mixed economic data and is instead rallying as investors focus on political developments. There are two main focuses today:

1. China: Chinese officials are working to curb lending, asking banks to suspend activity for the rest of this month in an effort to tighten monetary policy. This move has FX traders concerned about risk and moving to the the U.S. dollar for its safe haven qualities.
2. Massachusetts: Surprisingly, Republican Scott Brown won the battle for the late Edward Kennedy's Senate state. In a state that hasn't sent a GOP Senator to Capitol Hill in around 40 years, this is quite a coup. This puts the Democrat health care plan in jeopardy and is dollar positive, since it could mean $1 trillion less added to the deficit.

~

• Looking for U.S. Dollar Trends in Currency Trading
  Information for FX traders