Yes, the USD Forecast looks good for the next few months, but what does it all mean? Is it the end of the RAB? Will it continue to be the leader in world markets for some time to come? I want to take a look at how this currency will perform in these coming months and whether or not it is really the best option to have.
The reason why I am interested in this forecast is that I believe it will play a big role in the direction of the Forex market going forward. For the past year or so, the USD has enjoyed a strong dollar. This has caused a spike in commodity prices, forcing major players to take notice.
As a result, they have begun to pump up their currency investments into gold, silver, and other commodities, driving down the price of those assets. This is what is known as a bearish sentiment in the currency markets, where investors start to worry about the future value of their assets, and what it will do to them if the economic outlook changes.
The USD Forecast does not really worry me too much right now, because there is no way it can get any worse than it already is. However, it is a bit of a bearish sentiment. This means that it may be a short-term affect that will fade away soon enough.
This does not mean that the USD will stay strong for the long term though. It is also important to remember that interest rates are at historic lows, and that there is little hope of major inflation becoming an issue for the next few years. That will make it very difficult for the Federal Reserve to push the price of gas up and create a strong dollar.
But for the short term, the USD Forecast is a possibility to watch. It is important to remember that interest rates are so low right now that there will be room for further appreciation. To a great extent, the Fed can create more money and use it to further boost the currency.
One of the things that I am concerned about is that there is no indication of the euro crisis being resolved anytime soon. The euro is a foreign currency that is controlled by the European Central Bank. Since the exchange rate has become so weak, any strong force can push it even lower.
One other concern is that the world is still dealing with the fallout from the last recession. Having said that, we are already starting to see signs of recovery, with GDP growth in the US growing at a rate of 3% over the past year.
The only problem is that the UK is heading towards recession too, and GDP growth is only growing at a rate of 1.2%. That means that the US is definitely ahead of the game. If this is true, we can expect a lot of growth in the US, and therefore a similar trend of currency strength in the US.
Unfortunately, GDP growth is still not good enough to prevent another recession. Fortunately, I believe the US will reverse that trend before long. That means the USD Forecast will not matter too much anymore.
As I mentioned, I don’t see the USD Forecast being very important for the currency market going forward. The point is that you shouldn’t try to read too much into these things, because they don’t last forever.