The US Dollar is in a tailspin after being pressured for a month. The recent economic data released by the government showed a decline in gross domestic product growth. Now that is bad news for the US Dollar is no stranger to tailspins. It has been going down for about 6 years now, and that is not good for any currency. If it keeps going down like this, the market will be tough to make money in at all.
Economic data released over the last two weeks has caused markets to be in a tailspin. Even though manufacturing reported stronger numbers, there was no increase in gross domestic product. That is bad news for the US Dollar is no stranger to tailspins. The weekly endoscopy on Friday showed that there are some concerns in the manufacturing industry and that could cause the dollar to continue to go down.
One of the reasons the dollar has been weakening is because the market thinks the US Government may not be able to pass its fiscal stimulus package. That would cause a contraction in economic activity in the US. However, this is just the beginning, and there are many more indicators that will support or oppose any moves in the direction of the US.
The market is focusing on the possibility of a US fiscal stimulus package. A package of spending and tax increases is expected. The US market is anticipating a large increase in business investment, which will go along with higher wages. This should increase consumer spending, which should lead to rising prices. When there is a significant increase in prices overall, the Q4 GDP, which is the indicator for the state of the US economy, will begin to rise.
The other indicator that is pointing to an increase in spending is the price of oil. The price of oil is up over four percent over the last week. This should lead to an increase in US imports, which will push up the US dollar and put more pressure on the USD.
One of the important points to watch is the US dollar exchange rate. The market is watching the movements of the rate against other major currencies. If it moves up, this indicates that the US economic recovery is on track. If it moves down, the economic stimulus package may not have much effect on the US economy. This is a very important point that shouldn’t be missed by investors.
The economic recovery is being led by economic stimulus packages and lower interest rates. This should continue to drive the US economy and contribute to a stronger US dollar. This should also provide some support for the weak US dollar, as the strength of the dollar will help the economy to export goods internationally and purchase more foreign assets, driving the US economy even faster. US economic growth will most likely slow during the first part of the recovery, but should pick up later in the year. The key to economic growth is the strength of the dollar, which should help the US economy recover faster than expected.
As an aside, I would like to mention that I’m not a big fan of the economic stimulus package or the federal Stimulus Package. I thought it was a huge mismanagement of resources in my view. I think a better approach would have been to start a tax cut and use the stimulus money to further boost the economy, especially with the uncertainty that we face regarding the direction of the US economy. Please consider all this.