The Dollar is King- weekly currency update

The Dollar is King! The Dollar strengthened against the Pound, Euro, Canadian Dollar and Brazilian Real over the past month. This is a welcome relief for everyone Stateside, but does it mean the US economy is really back on track or simply not as bad as it's counterparts across the pond? Well, the Eurozone is certainly struggling. The situation in Greece is not improving, Brussels keep trying to make last-ditch attempts to prevent Spain becoming the latest Eurozone country to need a financial bail out amid mounting fears of a banking collapse and Italy are simply stopping all government spending. A short leap across the channel and the UK are trying to keep their head above water. After entering another recession, it looks like the expected growth rate for the remainder of 2012 will be a very subdued 0.5%, only gaining momentum later in 2013, despite the upcoming economic stimulus created by the Olympics. For the Real, the news is not as dire. Although the US Dollar is strengthening against the Real, mainly due to the Eurozone crisis, Central Bank intervention has also caused some movements. The Brazilian economy remains strong and the Government is simply trying to protect its export led growth. Thus the US Dollar returns as King – although to say it is entirely down to the misfortune of the Eurozone would be slightly misleading. The US has seen some very positive economic growth indicators over the last month which adds to the Dollar strengthening – or maybe it was all the hype about Facebook, who knows. For more information on the latest market movements, go to: http://www.moneycorp.com/usa