Market’s daily review
18:01 01/20/2006

Despite disappointing economic data over the USA, the American currency has grown against the basic currencies.

A dollar exchange rate has been supported by the conversations on the further growth of the interest rates level in the USA. Richmond Federal Reserve Bank President Laker has declared that according to the minutes of the US FRS FOMC last meeting it is possible to expect at least one increase of the interest rates level in the country.

Atlanta FRS President Jack Gajnn’s statement has also sustained dollar restoration. In particular, he has again emphasized the importance of struggle of the Central Bank with inflation.

 

The report of Philadelphia FRS research has shown the sudden dip of an industrial activity index in the region that at first put pressure upon a rate of the American currency.

However these losses have been short-term, as players have concentrated on strong indicators of a component of employment and new orders index.

 

According to Philadelphia FRS research the industrial activity in the region decreased in January, having developed at the slowest pace since June, 2005 when the index of activity made 0.0.

The key business index has unexpectedly fallen up to 3.3 from the revised value for December 10.9.

This index has appeared considerably below the expected level 14.0 and its value was minimal since July of the last year.

However the new orders index, the indicator of the future growth, raised up to 11.1 in January from December value 5.8.

The factory shipments index has grown up to 18.6 from 9.4.

The employment indicator has also become stronger up to 11.7 against 7.9 in December.

 

In December new home constructions in the USA reduced more than the forecasts as the slowed down rates of sales forced builders to make a step back.

The new home sales in the USA made 1.933 million for December that is below November 2.121 million.

It is the minimum level since March.

 

The building permits in the USA made 2.068 million for December at the forecast 2.100 million.


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