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Forex · News · Forex ForecastsNEWS / Forex Forecasts |
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Daily review of the market.
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11:36 08/09/2004
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Daily review of the market.
Last week, market, attention of the market was fixed on the head release of the week – Labor market review in the U.S. Forex market activity was low due to that fact.
Exchange rate of the fall crushed down following the release.
Indicators came out unexpectedly low.
The U.S. Department of Labor reports that number of people employed in American economy increased by 32 000 people, whereas forecasted to grow by 228 000 people.
The indicators of the previous two months were revised to the point of reduction by 61 000 people.
Thus, new jobs’ rise was two times lower than the revised indicators of the two last months.
In the U.S., unemployment dropped to 5,5% in July from 5,6% in June, reports the U.S. Department of Labor.
Economists had looked for 5.6%.
Unemployment rate reduction was mainly due to new jobs’ increase in agricultural sectors of production.
Average hourly earnings in the U.S. in July made up +0.3%, forecasted +0.3%, previous value equaled +0.1%.
Friday data makes us doubt that FRS rates would be raised further on.
Low rate has been putting the pressure on the dollar for two years now, making the dollar less attractive to foreign investors due to low profitability of short-term dollar deposits.
Prior to the release of the report, it was expected that interest rates on the dollar would be raised by 1.0% in a whole by the end of the year. Now, the rates can possibly be raised only 0,50% higher, i.e. by 0,25% two times.
Some analysts think that despite the signs of economic growth slow down, it is not likely that the FRS would give up the policy of regular rate hikes in the nearest months.
The forecast was created by trans1.
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