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Forex · News · USMarketNEWS / USMarket |
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Market activity is low due to holidays in Europe...Short review of the market.
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12:47 04/13/2004
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Short review of the market.
On Monday, European markets were closed due to Earster holidays and that is the reason why market activity of investors is low.
Today, American currency a bit dropped against major Euroepan currencies.
Iraq situation put pressure on the dollar.
However, the Euro rate weakening trend is still continuing on the Forex market.
EUR/JPY rate reduction puts pressure on EUR/USD rate.
FRS representatives’ comments in favor of interest rates’ increase insignifiantly supported the dollar.
The president of Federal Resrve Bank in San-Francisco, Parry, stated that the U.S.Federal funds rate could not stay on the level of 1.0% for forever and inflation would make 1% to 2% in the U.S. next year, which exceeds 1% target level of Central Bank borrowing.
In this case, natural Federal funds rate will make something around 3.5%.
Japanese yen is also growing against the dollar, as it has become known that active surplus of Japan’s balance of payments increased in February. The given fact proves that the second largest world economy continues growing.
According to the Ministry of finance, seasonally adjusted active surplus rose to 1.69 trillion yen (15.9 billion dollars). Economists had expected the given figure to be 1.66 trillion yen.
Last week, the U.S. Ministry of Trade publishe data on the February volume of wholesale companies’ inventories, the growth of which was the most powerful in the last four years, thus having pointed at the production increase.
Inventories rose 1,2% in February and made up 299,7 billion dollars, whereas January rise equaled 0,2%.
Wholesale trade indicator rose 1,2%, whereas inventories and sales ratio is record low – 1,17 months.
Industrial production rose 0,7% in the U.S. in February, having exceeded the forecasts.
Economists expected inventories to rise 0,3% in February after 0,1% rise in January.
The forecast was created by trans1.
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