Weak data on the U.S. economy was the reason for the weakening of the dollar…Brief review of the market. by OpenForex.com

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Weak data on the U.S. economy was the reason for the weakening of the dollar…Brief review of the market.

20:34 04/19/2004

Brief review of the market. After significant and long growth, American currency weakened against the basic currencies by the end of the weekend. Negative U.S. data and the statement made by the president of Federal Reserve Bank in Richmond, Broaddus, had caused sales of dollars. Broddas had declared that Monetary Policy Committee needed time for decision-making concerning the increase of major interest rate in the U.S., as they really wanted to make sure that American economy had enough strength. As the University of Michigan research had shown, American consumers had less optimism in April. April consumer optimism index, published on Friday, had set fresh lows since December had gone down to 93.2 from 95.8 in March. Analysts had expected a climb to 97.0. Current conditions index had dropped to 104.1 from 106.8 in March. Index of expectations had dropped to 86.2 from 88.8. The volume of industrial production in Japan in February has gone down on 3.8 % in comparison with the last month, that exceeds the forecast in 3.6 % a little. Downturn, all the second for half-year, was expected and has followed stable increase last 6 months. The Ministry of Economics, Trade and the Industries predicts increase in volumes in March and April. The volume of industrial production in Japan had dropped on 3.8% in February compared to the previous month, which a bit exceeded the forecasted 3.6%. The second in half a year’s period was expected and followed the six months steady rise. Ministry of economy, trade and industry forecasts March and April increase of the volume. The volume of industrial production rose 3.3% in January, dropped 0.8% in December, acquired 0.1% in October and November and 3.8% in September. The reason for growth were exports increase and increase in the volume of corporate expenses on investments. Annual industrial production rose 6.7% compared to preliminary forecasted 6.9%. In the first quarter, pays in Britain had risen at a quickest pace since August 2001 on the background of unemployment reduction and bonus increases in services sector companies. The average level of earnings, including bonuses, rose 4.9% in February after 4.7% rise in January. Number of people, who filed claims for unemployment benefits, reduced on 4,200 to 882,200 in March. British economy had risen 0.9% in the IV quarter. That was the maximal indicator’s growth pace in the last 4 years. Unemployment reduction in Britain contrasts with high unemployment in Eurozone. Unemployment had risen in Germany in March. Unemployment rate for Eurozone makes up 8.8%. The chairman of the US FRS, Alan Greenspan, stated on Friday that unblemished reputation was once again becoming a necessary quality for the company that wanted to succeed on the market. When making a speech at the Conference of Financial markets, conducted by FRS Bank in Atlanta, stated: “The rules won’t replace the characteristics”. The chairman did not comment on the state of the U.S. economy and its monetary policy. It is expected that the head of the Central Bank will comment on the given questions next Wednesday at the meeting of Economic issues Council.

The forecast was created by trans1.