Is the US dollar to go running back course?

For the first time for several years, the US dollar could value to gain against other major currencies in the world. In the three first months of the year 2005 is the dollar of the United States about the five percent against the yen and the euro. The gains for the dollar should be considered significant, if the United States still faces a growing trade imbalance in consideration. So far this year currency traders have offered higher returns in U.S. debt its focus from large trade deficits and current account of the United States towards changed. Display the last fortress of the dollar has a bit of confidence in these markets to the future address of the currency changed financial. A Bloomberg survey released earlier this week shows that they most important operator of badge the weakness of the dollar see resume later in the year, but the feeling between them is much more weak dollar expect, what was at the beginning of the year.

The power will be displayed in the currency of the United States, which should reach so far in 2005 only of short duration. The strong growth of the gross domestic product (GDP) for the last 18 months to start, show signs of approaching more normal levels in the coming two months. Signs for an economic growth slower probably causes a change in feeling between them operators of badge, basic to these problems, facing the economy of the United States. The United States trade and current-account deficit show no signs of any time soon to retire. In fact, I expected that the trade balance to a further deterioration in the coming months show the trade balance. An economic growth industrialized further experienced from the United States the most important Nations anemic. This keeps to buy more pressure on the US dollar as the consumption of the United States were still produced in Europe, Japan and China.

While the hope that the dollar again fall step by step course is Chinese before them most important coins, the most important wildcard in our forecast. Shows the information of the last of them mainly responsible for these decisions by China, that you not get Chinese, to adjust Yuan have the current value of the relationship. If negotiations on a possible revaluation emerge until end of the year, the pressure too low on the dollar since she would buy operator of badges, speed up the Japanese yen and other coins that is Asian freely negotiated, would a revaluation will benefit.

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