Euro/U.S. Dollar Could Decline To 1.26
By Angelo Airaghi:The U.S. is mildly recovering, while Europe is in recession. Eur/usd could again decline to 1.26.
U.S.: Private debt is still high.
In the U.S., the combination of job and G.D.P. growth should continue for some more time. Nonetheless, the recovery remains fragile and household debt is still high. Real spending rose in the first months of this year (0.2% in January and 0.5% in February), but real disposable income declined. As a result, household saving rate fell to 4.6% to 3.7%. Why? Income growth is non-existent, wages remain low. Stocks increased, but private investor participation is limited. Finally, housing starts have climbed since last summer. However, most multi-units are not sold. They are instead rented, as households are probably still lacking the confidence to invest in the sector. Since 2009, new highs were reached only 3/5 years after prices hit the bottom (2010). Mr. Bernanke stated nobody can beComplete Story »