As per the latest Reuters Poll of over 100 economists, “The US economy will grow at its fastest annual pace in decades this year and outperform most of its major peers, with the outlook upgraded sharply.” It should, however, be noted that the survey also mentioned the COVID-19 surge as the biggest risk over the next three months.
“There was a new wave of optimism among economic forecasters predicting a boost to economic activity from the $1.9 trillion pandemic relief package already passed and also from U.S. President Joe Biden’s proposed $2 trillion-plus infrastructure plan,” the poll added.
The survey also raises expectations of 6.2% yearly growth, versus the International Monetary Fund’s latest projection of 6.4%, while suggesting the “fastest annual expansion since 1984.”
While the news should exert further downside pressure on the US dollar, due to its safe-haven status, the pre-ECB trading lull seems to play its role of late.
Read: European Central Bank Preview: Five reasons for Lagarde to lift the euro