US$ still Potentially Weak in End Year
Posted on Saturday, October 31st, 2009 at 2:11 amU.S. dollar on foreign exchange trading today observed rose against most major currencies of the world, after trading yesterday on the currency’s move to weaken. It is estimated that the movement is strengthened technical correction. However, the U.S. dollar still has the potential to return to weaken as the strength of investor concerns over how robust economic growth of 3.5% positive who recently achieved.
With the achievement of positive growth in the country then the U.S. can be said to have come out of the recession, but so do the negative sentiment against the U.S. dollar is still strong enough. Estimated global investors are still worried that this positive growth is still vulnerable to experiencing stress.
This is due to unemployment rates continue to rise and also the country’s budget deficit is very large, so that the economic potential of this country to slip during the recovery process is still quite open.
In addition to this positive economic growth is still considered to be artificial, where growth is happening is the impact of policies to spur economic stimulus. Thus began her time with the removal of these policies of market participants are still not convinced that the U.S. economy was relatively capable of standing alone without any stimulus policies.
This encourages the negative expectations which the level of U.S. consumer spending is expected to decline. Indicator Personal Spending m / m which will be released by the Bureau of Economic Analysis tonight is expected to fall to -0.4%, whereas in the previous period was at 1.3% level. The U.S. dollar index is still moving generally weaker and are in the range of 75.8, which at yesterday’s trading range could be at 76.56.