17.06.2014 - IMF lowered its growth forecast of U.S. GDP
The International Monetary Fund issued a report according to which U.S. economic growth forecast for 2014 was lowered by 0.8% to 2.0% due to bad weather conditions this winter. In 2015 growth forecast remains at 3.0%. According to analysts of the IMF interest rates should remain near zero levels after the middle of 2015, and the market volatility may increase due to the slackness of the economy.
In addition, the IMF noted that inflation may temporarily be above the target level. Considering the reduction in the rate of growth of the U.S. economy and the absence of significant incentives for the growth we see weakness of bulls on the market that will likely result in a substantial correction of 5-10% in the medium term. We maintain our negative outlook on the U.S. market.
Wish you the profits!
FXFINPRO Capital Analytical department.