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Forex · News · Forex Forecasts

NEWS / Forex Forecasts

Market’s daily review

11:47 01/23/2006

On Friday the American currency continued trade in the limited price ranges against the basic currencies.

Some analysts believe that the dollar exchange rate can remain rather stable before the US FRS FOMC next meeting on which the further prospect of change of a rate level in the USA can clear up.

 

According to the data of University of Michigan, published on Friday, in January there has been observed improvement of consumer sentiment in the USA, owing to stabilization of the prices for energy, improvement of conditions on a labor market.

Thus, the preliminary value of the consumer sentiment index of University of Michigan in the USA for January has made 93.4 against December value 91.5.

It is already the third monthly gain of the indicator successively restored after a falling, caused by two destructive hurricanes in a region of Gulf of Mexico.

The value of the index has surpassed the economists’ forecasts who expected growth only up to 92.0.

 

The British currency, in its turn, became stronger after the data on growth of retail sales and mortgage lending.

Retail sales last data, having shown the maximal increase since November, 2004, have reduced anxieties about slowdown of development in retail sector.

 

The national cabinet of statistics of the UK has informed that in December retail sales rose 0.4 % to the last month, according to forecasts. It is already the fifth increase of retail sales data successively.

In November the data were revised with increase up to +0.9 %. Against December, 2004 sales grew 4.0 % when forecasts made 3.6 %.

The data have reflected the market’s expectations that the Bank of England would lower the interest rate from current 4.50 % in the near future.

 

The budgeted deficiency in the UK made +14.9 billion pounds for December at the forecast +14.4.

 

The preliminary value of the money supply index ?4 in Great Britain made +1.3 % for a month, +12.6 % for a year for December against the previous value +1.1 % m\m, and +12.1 % y\y.

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