Economists are looking at key housing report data that suggests home prices and new home construction are on the decline in the United States. While there is a debate among economists about the time frame of this housing price correction, almost everyone agrees that it will take years for the housing market to recover. Despite a continued decline in home prices, the U.S. dollar continues to weaken against major currencies, including the Yen, Euro, CAD, and Australian dollar. With robust economic expansion in many parts of the world, the USD will continue to lose value as a result of a huge trade deficit, a budgeting crisis, and a slow economic recovery in the U.S.
With continued conflict and instability in the Middle Eastern countries, a jump in oil prices may derail the global economic recovery. If this occurs, the USD may appreciate in value in the short-term. If another conflict or natural disaster takes place, this may also lead to limit global economic growth, which would allow the USD to temporarily appreciate. The Robot Forex team still believes that the future for the USD is grim, especially after the United State's decision to involve itself in another conflict overseas.