Strong U.S. Dollar and Cheap Oil Expected to Help Global Economy

The plummeting price of oil and surging U.S. dollar are increasing growth throughout the world, according to the Bloomberg Global Poll.

Three-quarters of responding investors, analysts and traders who are Bloomberg subscribers said oil’s 55 percent plunge since June will spur worldwide expansion. Fifty-eight percent said gains in the dollar against currencies such as the the euro and yen will help more than hurt.

The encouraging perception of two of the most important trends shaping financial markets helps allay concern that cheaper crude reflects a slowing world economy that could be pinched if the greenback keeps rising. Both are likely to be the subject of debate at the World Economic Forum’s annual meetings this week in Davos, Switzerland.

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.