Recent Economic statistics released by USA authorities have given lot of confidence to the Global Investors although USA is not out of danger as on date. With the support of high consumption Q3 GDP growth was at 2.5 % as against 1% growth registered in the Half year ended June 2011. Industrial activity is showing some positive indication. Service Manager Index is still moving around 50.8 and the unemployment data is still concerning. Federal Reserve is continued to adopt wait and watch policy. No interest rate hike, No assets Buyback plan and strong assurance to give stimulus if required. USA is now working to cut the budget deficit by USD1500 Billion. For this a committee has been set up. If somehow it is not approved by the Congress it is likely that USA defense Budget will be trimmed down by USD 1200 Billion. The USD index is at its peak of 79.5, the highest since January 2011, It is expected that Dollar to continue to get support amidst risk-off trades as market focus remains on development in Euro zone.
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