Weak statistics from the United States of America can harm US dollar
Initial Jobless Claims and Retail Sales statistics from US was weaker than expected and it had a negative impact on USD and changed the mood of traders against American currency. Talks about the possibility of US to stop the reduction of asset buyout have started again. But even though there is such a negative attitude towards USD, we hardly believe that American dollar has a gloom future and that Federal Reserve will stop the reduction of obligations and mortgage-backed securities buyback.
In order to take that decision Federal Reserve have to make sure that the economy growth for the last several months is relatively weak. Looks like a cold winter had a stronger impact on American economy than it was expected before.
To conclude with, we believe that the decrease of USD will not last for long.
Semen Kamensky