The U.S. data stimulates the rise of the dollar…Brief review of the market. by OpenForex.com

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The U.S. data stimulates the rise of the dollar…Brief review of the market.

09:15 05/21/2004

The U.S. data stimulates the rise of the dollar…Brief review of the market. Brief review of the market. American currency has changed its direction at today’s trades. The dollar rose against major currencies prior to the FRS report. The hope that FRS will raise a 46-year low interest rate target resulted in this year’s 5.5% dollar rate climb against the Euro. The reason for interest rate hike was a supposition that Philadelphia region’s processing sector expanded for another time in the last 12 months. The dollar is also supported by employment growth signs in the U.S. On Thursday, the U.S. Department of Trade reported said 345000 people filed new claims for state unemployment benefits in the week ended May 15 compared with a revised 333000. The number of initial claims rose for the second straight week. Since the beginning of the year, average indicator of weekly claims makes up 347500 against 415300 last year’s similar period. The economists expected that number of unemployed would fall from 331000 to 328000 and the forecasts ranged from 318000 to 345000. 4-week moving average, smoothing uneven weekly indicators and being the more stable indicator of unemployment rate, dropped from 336250 to 333500 last week – the lowest since November 2000. During the week, repeating claims indicator reduced by 23000 to 2,943 million. The U.S. Labor department said that during the week ended May 8, 22 states and U.S. territories reported increase in the number of claims for state unemployment benefits and 21 state and U.S. territories recorded reduction of the given indicator. The Philadelphia Federal Reserve’s measure of industrial activity fell to 23,8 in May from 32,5 in April. The index is calculated by means of surveying regional industrial sector managers. In May, the Philadelphia index had come out higher than zero for the twelfth straight month, thus pointing at continuing activity growth in the sector. However, growth rates were lower than those in the previous months. The highest index value in the last 20 years was recorded in January, when the index made up 38,8. May value of the index came out below economists forecasts. In average, the economists expected the index to come out as 32,0 in May. Philadelphia index component, reflecting new orders, fell from 26,1 in April to 18,3 in May. Component, reflecting shipments, dropped from 27,7 to 20,2. Component, reflecting the level of employment in the industrial sector of Philadelphia and its region, rose from 12,2 to 22,6. The given index came out positive for the eighth straight month, thus pointing at staff expansion in the sector. Component, reflecting workweek duration in region’s industrial sector, rose from 10,4 to 12,7. Philadelphia index component, reflecting prices received by Philadelphia production companies for their products, rose from 13,7 to 29,1. Component, reflecting prices paid by production companies of the region for raw materials, materials and complete units, rose from 51,9 to 59,6. Component, reflecting warehouse inventories, dropped from 11,7 to 9,2. Component, reflecting the volume of non-fulfilled orders, rose from –2,5 to 12,8. As reported on Thursday by privet research organization Conference Board, leading indictors index - economic activity indicators anticipating business cycle movement 3-6 months ahead - rose 0,1% in April on the background of increase in stock quotations, Treasury bonds’ yield and money supply volume. Index has been rising 12 times in the last 13 months. Economists had looked for 0,2% gain in April. Coinciding indicators index - economic indicators coinciding with the current stage of economic activity – rose 0,3% after 0,2% gain in March. Lagging indicators index rose 0,2% in April compared to 0,1% dip in March.

The forecast was created by trans1.