Medium Term USD Forecast, November 2009Lloyds TSB's favorable USD forecast against the EURO is based on the expectation of a stronger growth of the American economy, which in the base case scenario is predicted to be higher than 2%, at a time the advanced economies as a whole are predicted to grow at an average rate of 1.3%. Furthermore, US interest rates are predicted to rise faster than interest rates in other advanced economies because they are currently considerably lower. Lloyds TSB's USD forecast predicts that US interest rates are likely to be in line or even higher than euro interest rates by the end of 2010. In particular, it is predicted that by the fourth quarter of 2010 the US - 3-month (offer) rate will rise to 2.17% while the respective Euro 16 rate will rise to 1.33%. If you have an interesting comment in relation to this article please use the form below Related Posts to submit it. Please read submission guidelines before writing and submitting your comment.
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