The dollar on Friday, August 20, again in demand, even against the background of weak statistics for the United States. In relation to the euro currency is the U.S. has made a significant leap forward, and a week for the pair closed below the uptrend line of the local - at around U.S. $ 1.2708 Apparently, not least the players reacted to the report of the agency Standard & Poor's "How serious is the threat of deflation for the U.S.? "distributed by Reuters.
The report states that the U.S. would avoid deflation by determination of the Federal Reserve System. The probability of long-term decline in consumer prices is low, if not develop re-recession. "When the level of core inflation falls below 1% until deflation is not far. And again a recession can put us on the brink, - noted economist, S & P by David Vise. - We believe that the U.S. will be able to avoid deflation, as the low savings rate, growing population, as well as quick and decisive action the Fed to expand money supply, will not fall into this trap, "- the document says.
However, there is a risk that falling home prices, a weak stock market and the inability of banks to lend could still lead to deflation, experts added. They stressed that the latest index of consumer prices (CPI) indicates a very low inflation, but not yet about deflation.
Thus, almost all negative factors for the U.S. economy are in the areas of housing market and stock prices. And how to improve the situation in these areas in the country already knows. It remains only to deal with bank loans, but it is a technical problem. As a result, the dollar has a chance to continue to strengthen. At 9:00 Moscow time on Monday, 23 August, one euro is worth 1.2720 dollars during the session, most likely the beginning of the next wave of growth in U.S. currency.
