According to a recent survey by CNN Money, top economists are projecting a 3.1 per cent gross domestic product (GDP) for the United States economy during the final quarter of 2010, after a 2.6 per cent third quarter increase.

The fourth quarter project is an upward revision from previous forecasts and the report also indicates expectations are high for a steady growth throughout 2011.

Unfortunately, Americans are unlikely to see the full results of steady economic improvement for a few years. Jobs and housing are both expected to remain flat during 2011 and beyond.

Projections are for a 9.7 per cent unemployment showing in December and flat to very slow declines in unemployment for the next two to three years.

Housing prices are expected to remain flat in 2011 with very modest growth of around 0.4 per cent, followed by another modest increase in home values of 2.2 per cent for 2012.

Meanwhile, continued pessimism over the state of the European Union economies and signs of stability in the US have combined to push the euro and pound lower this week against the greenback.

One euro currently nets just $1.3092, while the pound gets $1.5377 in mid-afternoon trading Wednesday (December 22).

Surprising in the drop for the euro-dollar is that US equities are relatively strong this week. The Dow Jones Industrial Average is just below 11,600 currently.

The euro-dollar has moved with strong correlation to equities in the last several months. This divergence has prompted speculation that either the euro is headed for a steeper drop off, or equities are likely to nose dive to close out 2010.

When the New Year begins, currency traders are going to closely watching earnings reports from US retailers for signs of improved consumer spending during the holidays. They will also pay close attention to ongoing debt in Ireland and other EU member nations.