The debt crisis of the Government of the United States and the fate of the dollar
It has been the failure of last week as the U.S. government had failed to reach a compromise on the issues of disability and this would complicate the lives of the dollar more than that.
However, this would increase the effort of establishing the direction of currency for the better over the next week.
Leads the start of the week, discuss Ajzalve holds greater potential for the movement of the dollar. Depending on how the evolution of this case could have a widespread impact not only on the dollar but on the wider financial markets, it is wise to work within a reasonable probability to explain how this issue will affect the dollar. If one thinks for a period of two weeks, it will guarantee that the large fluctuations in the dollar will continue until there is a big trend. Because of this, the outlook is much more flexible, and will breach the deficit ceiling officially on August 2, because of this time frame, there is a time for political maneuvering, Democrats and Republicans to earn points with each of their constituents in order not to go to another place, there is a very low probability that the end of this the situation in technical default and the possibility to reach a solution before the end of the next week or the following Monday is high.
If you simply raise the limit to avoid the pain of a default event, Can provide temporary relief for financial markets and the dollar in parts Equal, it is likely to be limited during the follow-up Rating agencies and there should be Suggested that the important goals to reduce the deficit over a reasonable time frame By focusing on revenue, focus on spending or a combination of Both, and can be viewed as an attempt to break the pump On the economy and the withdrawal of the incentives that led to the excessive trust markets
Money since the Great Depression, if we end the week without Clear solution, where should we expect to grow unstable fluctuations Increasingly through the rumors and asks for the addresses that fear.
Last week, the European Central Bank announced a comprehensive policy Tables to contain the crisis contagion in the markets of sovereign lending and private.
There have been considerable efforts, however, the deficit still stands at the end This leads to lower morale of the market.
If the steps have been taken does not enhance the confidence, the euro will continue to decline and thus raise the U.S. dollar.
These problems are the most widespread and Gamaudha they determine the direction of the dollar general.
However, there are some events that can cause fluctuations in the short term
And perhaps even contribute to change the current trends, we have the confidence of consumers and the sector data Housing.
However, the real news over the first reading of the gross Second quarter GDP, which alone can affect the direction of the dollar Balasbuaan next.
