USA (USD, Dollar) Economic & Currency Analysis

USA (USD, Dollar) Currency FX Analysis

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Short Term Rating Currency Ratings Help
Long Term Rating Economic Ratings Help


USA SWOT Statistics

Strengths + Opportunities = 49

Threats + Weaknesses = 29

When strengths & opportunities substantially exceed threats & weaknesses an investment in the Dollar has great long term potential.

The United States of America is a Constitutional Republic that was first founded in 1776 when it declared independence from Great Britain. Though originally comprised of thirteen colonies, the country now encompasses fifty states. The states maintain their own laws in matters not already regulated by the federal government. The economy is largely Capitalistic with some Federal regulations enforcing fair and ethical business practices. The United States is the largest importer of goods and the third largest exporter in the world. The private sector makes up over half of the countries' economy with Federal, State, and local governments covering the rest. The country features a very diverse range of culturally and ethnic backgrounds and has the third largest population in the world. The primary spoken language is English.

Dollar Currency Analysis Update

The United States (US) has a highly productive, capitalist economy and is the largest and most diverse market in the world. USA's Fundamental Currency Analysis (short term investment): the US dollar (USD) has the potential to increase in value especially versus the Australian and Canadian dollar because of the significant potential of undervalued companies. USA's Value Investor Survey (short term investment): the economic environment is very favorable for long term economic growth due to high scores on economic freedom and economic diversity. USA's Currency Trading Strategy: An undervalued currency, high investment flow potential and favorable business environment lead to a positive outlook for US investments, which will also benefit from positive international actions.

Factors That Positively Affect The Dollar

  • Bankruptcy Treatment According to the Economist, America's enlighten attitude to corporate bankruptcy is designed to put economic resources back to productive use as quickly as possible. This means distinguishing between...
  • Entreprenuerial / Innovative Country Culture Innovative (or entrepreneurial) countries tend to outperform less innovative countries, because innovation opens new businesses with less competition. Additionally, innovation can change existing...
  • Economies of Scale Large countries also have economies of scale. More people can produce more goods and seek synergies between other industries within a single country. Scale can also benefit brain power because more...

Factors That Negatively Affect The Dollar

  • Health Care Cost Generally, health care is an expenses, so the higher the expenses, the less money is distributed to employees. US Health System: The US has the most expensive health care system in the world, but the...