Employment report in the U.S. failed to support national currency…Brief review of the market. by OpenForex.com

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Employment report in the U.S. failed to support national currency…Brief review of the market.

07:42 06/07/2004

Employment report in the U.S. failed to support national currency…Brief review of the market. Brief review of the market. Despite positive outcome of the U.S. Labor market report and stock market growth, the rate of the dollar found itself under the pressure. Economists think that Friday data was not enough to make FRS raise discount rate more than 25 basic points this month. According to the existing forecasts, Federal funds rate might be raised 0,25% at the next meeting of Open Market Committee of FRS US due June 29 – 30. As reported on Friday morning by the U.S. Labor Department, 248 000 workplaces were created in America’s economy in May. In average, economists had looked for increase to 216 000 – 225 000 in non-farm payrolls. The possibility of raising the rate 0,50 interest-bearing point was based on the supposition that May non-farm payrolls’ increase would be higher than the average forecasts, i.e. on the level of 300 000 or higher. Though May non-farm payrolls’ increase to 248 000 was higher than the average forecasts, it still turned out to be very close to them. The indicator came out better than forecasted and its previous value was revised aside increase. It has been noted that starting from March up to May, non-farm payrolls increased on 947 000, which is the maximum three-month increase in the last four years. In the U.S., unemployment rate did not change compared to April, having remained on the level of 5,6%. Average hourly earnings index also remained unchanged on the level of +0,3% in the U.S. in May. In Japan, leading indicators index dropped from 75.0 points in March to 66.7 points in April (revised data). That is preliminary data published by country government. Coinciding indicators index, characterizing current economic stance, dropped from 50.0 points in March to 44.4 points in April. Lagging indicators index fell from 71.4 points to 66.7 points. In April, household spending made up +4.6% in April in Japan against the previous +0.2%. Consumer demand growth is a positive factor for the economy, as well as for the yen rate. According to the preliminary data of German Ministry of economy and labor, April’s factory orders’ rise was the record one in the last 15 months. They rose 2.5% against March. Economists had looked for 0.9% gain. Compared to the previous year’s April, factory orders rose 7.7%, whereas forecasted to rise 5.6%. According to specified data, the given indicator rose 5.5% in March and not 5.7%, as reported earlier. The main reason for such rise was increased orders from abroad. The given indicator rose 3.8%, whereas domestic demand increased only on 1.2%. Retail sales index in Europe (12) in April made up +1.3% per month, +0.1% per year. The previous value of the given index was revised from +0.9% to +0.3%.

The forecast was created by trans1.