• July 18, 2024

First In, First Out for U.S. Economy

This guest post provided by Sensa.

That’s the conclusion reached by this GFT Forex Blog post. The author says that as the first G7 economy to enter recession, back in 2007, the U.S. will also be the first to make a full recovery. The author continues, “The other way to look at the current economic situation is that if the U.S. economy does not recover, no one else will. Globalization has increased the mutual dependency of many countries. For export dependent countries in the Eurozone and Asia,a rebound in U.S. demand is essential for a recovery.”

That thinking is likely at the root of the dollar’s perennial status as a forex trading safe haven.  Even though there are periods when it’s seen as riskier than other currencies, traders keep coming back to the USD for safe (well, safer) online trading. However, will the USD maintain its strength when the global economy stabilizes? The author says that recovery will lead to “a new shift toward fundamentals” and a resulting focus on the large amount of U.S. government debt.

Economists have predicted that recovery could begin as early as 2010, so in the next few months, it’ll be interesting to track the USD and see if the “first in, first out” phenomenon also means that the USD is the first one to lose some of the spoils of the recession.