Brief review of the market. by OpenForex.com

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Brief review of the market.

07:30 06/09/2004

Brief review of the market. Forex market experiences the process of closing long positions on the dollar. Yesterday, American currency was close to trading on the level of two-month minimum against the common European currency due to fears that FRS might not raise the discount rate quickly enough to restrain inflation. Government reports could speed up the process of inflation in the U.S. this week. According to the average forecasts, it is expected that on Thursday the U.S. Labor Department will report on May 0,8% rise in the price of imported goods. At yesterday trading, American currency received a short-term support from the statement made by President’s Advisor on National Security, Rice, who said that the main issue of the forthcoming G8 meeting would be world economic growth acceleration. Rice expressed her hope that OPEC decision that was made last week would contribute to reduction of world prices for oil. This week, investors’ attention will also be fixed on the testimonies of the head of the U.S. Federal Reserve System, Alan Greenspan, due Tuesday and Thursday. In Germany, the number of employed dropped on 151 000 people (-0,4%) to 37.8 million people in March compared to the previous year’s level. In February, the given indicator dropped on 131 000 people (-0,3%). That is preliminary data that was published by Federal Statistical Services. Compared to the previous month, the number of employed. Seasonally adjusted number of employed dropped on 33 000 people in March compared to the previous month, when the number of employed dropped on 22 000 people in February and on 18 000 people in January. Wholesale prices index made up +0,5% per month, +3,6% per year in Germany in May. The previous value of the given index equaled +0,4% per month, +2,4% per year. Annual value of the index had reached its maximum since April 2001. Index of real estate prices made up +2,2% per month, +20,4% per year in Britain in May against the previous month’s value of +1,8% per month, +19,1% per year. For the second straight day, the rate of Swiss frank had been staying on the level of year’s maximum against the Euro and on the level of four-month minimum against the dollar. High prices for oil and militant attacks’ threats strongly support the rate of Swiss frank. In Switzerland, the rate of unemployment dropped to 3,8% in May and that coincides with analysts’ opinion about the continuing recovery of Swiss economy, which in its turn supports Swiss frank against the dollar and the Euro. M2+CDs money supply index made up +0,2% per year in Japan in May, whereas the previous value equaled +1,9%. Index value is the maximum since August 2003.

The forecast was created by trans1.