US Dollar : A short term Forecast
The US Dollar is experiencing tremendous pressure due to higher interest rates expected in next year in Europe & US.
The rate of savings in US is going to be high due to the effect of recession. Although the world economies are experiencing recovery the spending habits are influenced by the aftereffect of the recession & due to people expecting the interest rates to rise in future.
Recently the Royal Bank of Australia took a decision to increase the interest rates. This decision will have an effect on world economy as the high interest rates would result in inflation- higher prices.
In US although Housing sector is growing commercial real estate industry is falling at full speed. Personal credit is declining at a rate of 4 % year to year basis due to stringent credit standards.
On the contrary the US firms are growing & new orders are increasing. The employment is not growing at the same rate but is expected to grow over a short period as Companies would again start recruiting.
The recent decline of US Dollar against major currencies (especially Canadian & Australian Dollar) could be a beginning of downfall which could last till the end of December.
The rate of savings in US is going to be high due to the effect of recession. Although the world economies are experiencing recovery the spending habits are influenced by the aftereffect of the recession & due to people expecting the interest rates to rise in future.
Recently the Royal Bank of Australia took a decision to increase the interest rates. This decision will have an effect on world economy as the high interest rates would result in inflation- higher prices.
In US although Housing sector is growing commercial real estate industry is falling at full speed. Personal credit is declining at a rate of 4 % year to year basis due to stringent credit standards.
On the contrary the US firms are growing & new orders are increasing. The employment is not growing at the same rate but is expected to grow over a short period as Companies would again start recruiting.
The recent decline of US Dollar against major currencies (especially Canadian & Australian Dollar) could be a beginning of downfall which could last till the end of December.
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