Futures Market News
Economists expect dollar to maintain strength
May 24, 2010 11:56 AM
A recent survey of economists is predicting that the U.S. dollar will remain relatively strong in the coming months as opposed to quickly shedding its recent gains against the euro.
The predictions cited in the National Association for Business Economics survey will be of interest to currency futures brokers and investors of all types. For example, the survey predicted that the nation's gross domestic product will grow by a 3.2 percent margin in both 2010 and 2011.
That prediction marks a slight increase over the 3.1 percent GDP growth that was predicted for this year back in February.
On the foreign exchange front, the organization predicted that the dollar will remain strong this year against the euro while also citing its strength in a trade-weighted basket of foreign currencies. In another potential sign of good news for consumers in the U.S., credit conditions were said to have eased somewhat since February.
The survey also found that 51 percent of economists believe that Greece will not end up defaulting on its debts, while 12 percent expect a default to occur in the next 12 months.
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