American currency is still under the pressure…Brief review of the market. by OpenForex.com

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American currency is still under the pressure…Brief review of the market.

08:39 05/27/2004

American currency is still under the pressure…Brief review of the market. Brief review of the market. American currency continues to decline at today’s tenders. High prices for oil and the fall of American stock exchange indexes’ futures negatively affect the rate of the dollar. Record oil prices arise concerns as to whether the American economy will be developing at a pace enough for FRS to make a rate hike decision. The possibility of significant growth of international trade balance deficit and payments balance deficit is also of great concern for the U.S. In its turn, the rate of the Euro is supported by European (12) economic data and, in particular, economic review showing the recovery of business expectations in Germany and proving that in the first quarter Eurozone economy was developing at the quickest pace ever since 2001. The rate of the dollar has declined after the comments made by Germot Herb of Ifo Institute, saying that he no longer supported the idea of ECB rate reduction. In Germany, business confidence index, which is the important indicator of the stance of European economy, reduced in May for the third month in four-month period. On Tuesday, Munich Ifo Research Institute published business confidence index that dropped from 96,3 in April to 96,1 in May. Economists had looked for index to reduce to 96. Index component, reflecting the forecasts of economic state for the nearest months, had risen from 97,7 to 97,8. Index component, reflecting current situation, dropped from 94,9 to 94,4. On Tuesday, National Association of Realtors reported that one-family home sales on the secondary market of the U.S. rose 2,5% to 6,64 million units annual rate in April compared to March. As reported on Tuesday, consumer confidence index, calculated by Conference Board, rose to 93,2 in May compared to revised 93,0 in April. According to the initial data, April value of the index equaled 92,2. In average, economists had looked for 93,5 climb. Index component, reflecting Americans’ attitude towards the economic situation and their current financial standing, dropped from 90,4 in April to 90,3 in May. Index component, reflecting Americans’ expectations in terms of the nearest six months, rose from 94,8 in April to 95,2 in May. Of all Americans, who participated in Conference Board survey in May, 30,6% think that it is difficult to find a job. 28,0% of respondents though the same way in April (revised indicator). Initial data showed that April indicator equaled 27,6%. The share of respondents, who think that there are enough workplaces, rose from 15,6% in April to 16,6% in May. The share of respondents, thinking that work conditions improved in the U.S., rose from 21,7% in April to 22,3% in May. In Great Britain, the volume of corporate investments rose 0,3% in the first quarter compared to the previous one and came out 4,4% higher than the last year’s level, making up 28.918 billion pounds sterling. That is preliminary data published by National Statistical Services. The volume of investments, made by private and state companies of processing industry, rose 2.2% compared to the previous quarter and dropped 3.8% to 3.355 billion pounds against the previous year’s level. In private sector, the volume of investments in the sphere of services has risen 1.8% compared with the previous quarter; investments in construction and other industrial branches had fallen 11.7%. Compared to the last year, investments in the sphere of services had risen 8.3% to 21.969 billion pounds; investments in construction and other industrial branches had fallen 10.9% to 3.047 billion pounds. In France, consumer prices rose 0.3% in April compared to the previous month, when they rose 0.4%. Analysts had looked for 0.3% gain in April compared with the previous month. Compared with the last year, consumer prices had risen 2.1% in April after 1.7% gain in March. Harmonized CPI, calculated in accordance with the common European technique, had risen 0.3% in April compared to 0.4% gain in March. Compared to the previous year, HICP rose 2.4% in April after 1.9% gain in March.

The forecast was created by trans1.