Excerpt from: Forex Forecast
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| January 05, 2010 | | What will happen to the U.S. economy and the U.S. dollar? | Looking ahead to the U.S. dollar forecast for 2010, many are looking at the likelihood for U.S. economic growth. However, analysts disagree on what is likely to happen in 2010.
Kathy Lien offers a summary in FX360 about two different opinions regarding U.S. economic growth prospects in 2010:
Nobel Laureate Paul Krugman is particularly pessimistic. In comments
made this morning, he said the unemployment rate will most likely
increase, house prices could drop by another 5 to 10 percent while he
sees a 30 to 40 percent chance of a double dip recession. With fiscal
stimulus expected to fade by mid-year, additional monetary stimulus may
also be needed. Blackstone’s Byron Wein disagrees and says he sees the
unemployment rate dropping below 9 percent. This divergence in
expectations suggests a murky outlook for the U.S. labor market and
U.S. economy.
It should be interesting to see what happens going forward.
| Topic Tags: forex trading, forex trading forecast, Kathy Lien, Paul Krugman, U.S. dollar, U.S. economy | |
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