Posts Tagged ‘the rates’
Better prospects for the Dollar
Many economists have taken an opinion: currently, the dollar has a greater chance of appreciation against the euro than vice versa. What are the reasons?
There are three key points that underpin this perspective:
Growth
The U.S. economy has shown signs of greater weakness than Europe, but experts believe that recovery will be faster. For now, both are in recession, which is not yet known but the scope is expected to be more durable in Europe.
Interest rates
While the Fed has cut rates from 5.25% to 1% in 13 months, the ECB has dropped only 0.5 points. Analysts now believe that the monetary authority will try to apply a much more aggressive monetary policy to stimulate the economy.
Tags: economists, the euro., the rates