John Snow on US fiscal tightening of deficit rallies dollar

US Treasury Secretary, John Snow, affirmed in interviews yesterday that the Bush administration would now be looking to address the spiralling budget deficit.

At nearly 6% GDP, the US trade deficit is a real concern for investors in US markets. And although the Dollar rallied strongly this week, it is still in an ongoing cycle that has seen it lose value continually over the past two-and-a-half years.

While US jobs figures, released this week, finally showed a turn around in the employment market, they provided little real meat that could prove to investors that the uncertain American economy was stregthening as desired.

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