Forex Blog: Currency Trading News & Analysis.

December 6th 2006

USD decline spurs fear of “hard landing”

With the USD in a full-fledged tailspin, many economists and analysts are mapping out the implications of a further decline and modeling worst-case scenarios. The release of new economic data is only adding fuel to the fire, and for the first time, many are embracing the possibility of a complete collapse of the USD, as investors rush en masse for the exits. Already, the Dollar is nearing all-time lows against the British Pound and the Euro. Housing data has stabilized slightly, but manufacturing data reveals that many companies are building unhealthy balances of unsold inventory. Meanwhile, GDP growth forecasts have been downgraded to sluggish and the Fed is threatening to further raise interest rates. The Financial Times reports:

“Combined with other soft US data, the ISM data will reinforce fears of a hard landing and will add to the momentum behind the dollar sell-off,” said Martin Slaney at GFT Global Markets.

Read More: Hard landing fears hit dollar

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Posted by Adam Kritzer | in Economic Indicators, US Dollar | No Comments »

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