Tuesday September 23, 04:18 PM
FXNEWS-Crisis has dollar-positive aspects-Commerzbank
Sept 23 (Reuters) - 'The joy abut the fact that a systemic collapse has been prevented has not made the fundamental problems of the U.S. economy disappear,' Commerzbank (Xetra: 803200
- news) writes in a note. The period of weak economic performance will last longer than usual in economic downswings, the firm says, as private households will probably refrain from spending for quite a while because of a significant decrease of their private wealth. 'But from a FX market perspective, this is exactly the reason why this crisis also has dollar-positive aspects: A prolonged period of weak domestic demand will probably lead to a decrease (in) the largest dollar-negative economic imbalance: the U.S. current account deficit.'
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