Here are the top three things happening worldwide that can impact the U.S. dollar:
1. Dismal is the best way to describe U.S. economic growth for the first quarter. It was the worst performance in over four years! And things aren't looking very bright on the home front.
2. The glut in the U.S. housing market is stunning when you consider home prices have been falling like a rock. Economics 101 says lower prices should "clear a market," or bring in bargain hunters to snap-up the bargains. It hasn't happened in housing. It's a scary indication that it could get much worse in housing before it gets better.
3. Can you say "stagflation?" Stagflation is defined as slow or recessionary economic growth accompanied by rising inflation. In other words: the worst of both worlds for an economy, and a very ugly scenario for the U.S. dollar. And guess what, we got news on Friday the temperature is rising on our central bank's favorite gauge of inflation.
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