So is the status of the dollar as the world’s reserve currency in jeopardy?  A valid question as the US runs up a $1.7 trillion dollar deficit, 10% employment, and contracting GDP figures.  Despite these grueling realities, in our opinion here at Notes , the short to medium term outlook on the dollar remains strong.  In the long term, however, we expect a slow, painful dollar demise.  Here’s why:

Tanned, rested, and ready from a week of hiking in the Rocky Mountains, your editor is happy to report that good Mexican food is still cheap in America and prices are still rising in Australia. But did we miss something while we were away?

The revised 1Q GDP figures to be released next week, will likely support the sense of optimism that pervades the market, according to a report by MarketWatch.

Economists expect the gross domestic product to be revised up to 0.9% in the first quarter, from the initial estimate of 0.6% when the government releases the data on Thursday morning.

Markets got very excited towards the end of last week. There was all that loose talk about the credit crunch being over for starters. This was compounded by some better-than-expected US economic data.