Daily review of the market. by OpenForex.com

news

job

forum

Forex · News · Forex Forecasts

NEWS / Forex Forecasts

Daily review of the market.

06:37 08/05/2004

Daily review of the market. Forex market activity is still rather low. Currencies are trading within limited price ranges. The rate of the dollar slightly declined after the release of personal spending data in the U.S. that showed reduction. However, American currency is somehow supported by data proving that business activity is rather high in the U.S. The Institute for Supply Management reported on Monday, August 2, that national factory index rose to 62,0 in July from 61.1 in June. The received figure coincided with the forecast. ISM index component, reflecting the volume of production, increased from 63,2 in June to 66,1 in July. Component, reflecting new orders, climbed from 60,0 to 64,7. ISM index component, reflecting production sector employment, dropped from 59,7 to 57,3, thus pointing at continuing staff expansion in production companies of the U.S. Price component of ISM index decreased from 81,0 to 77,0. In the U.S., personal income rose by 0,2% in June, disposable personal income also increased by 0,2%, reports the U.S. Department of Trade. Personal consumer spending dropped 0,7%. Economists had looked for gain in 0,2% in personal income and a dip to 0,1% in personal spending. Specified data show that in May, personal income rose 0,6%, personal disposable income rose 0,5% and personal consumer spending increased by 1.0%. Indexes came out lower than expected. Steep reduction in consumer spending hit new record in the U.S. in June ever since September 2001 and proved that the U.S. economy experienced stagnation phase in June. Eurostat reports that Eurozone’s PPI did not change in June compared with the previous month. In the EU countries, PPI also remained unchanged. In May, prices rose 0,6% in Eurozone and increased 0,7% in the 25 countries of the European Union. Compared with the previous year, PPI climbed by 2,4% in May in Eurozone and rose 2,7% in the EU in a whole. Prices for energy dropped 0,5% in Eurozone and 0,6% in the EU compared with a month earlier. Prices for semi-products rose 0,1% in Eurozone, as well as in the EU in a whole. Durable consumer goods prices went 0,1% down in Eurozone and did not change in the EU in a whole. Everyday consumer goods prices rose 0,2% in Eurozone, as well as in the EU in a whole. In Eurozone, unemployment rate did not change in June compared with May and remained on the seasonally adjusted level of 9.0%, reports Eurostat. The level of unemployment equaled 8,9% In June 2003. In the countries of the European Union, the level of unemployment made up 9,1% in June, not having changed compared with May. The lowest level of unemployment was recorded in Luxembourg and Austria (4,2%), Cyprus (4,4%), Ireland (4,5%), Great Britain (4,7% April data), the Netherlands (4,8% May data). Poland has been the unemployment leader for the third straight month (18,9%), then follows Slovakia (16,2%), Lithuania (11,4%) and Spain (11,1%). According to Confederation of British Industry report, retail sales balance for June made up +24% in Britain against the previous +43%. The given data negatively affected the rate of pound sterling. Market attention is mainly fixed on Friday Labor market review that is t be released in the U.S. It is to be the last fundamental release before the Federal open Market Committee meeting of FRS U.S. due August 10. That data might influence the decision of the Federal Reserve System of the U.S. in terms of interest rates.

The forecast was created by trans1.