A week ended positively for the dollar .

Industrial and labor market indexes showed positive dynamics. Improvement of prospects on a labor market will raise consumers’ sentiment, will increase expenses and the further economic growth the nearest months. New jobs and a low rate of unemployment signal that power of economy increases.

These factors, together with signs of manufacture growth, can spur FRS to raise again the discount rate the nearest months. Growth of the companies’ profits went up for the last year.

According to the Employment Report of the Bureau of Labor Statistics, U.S. Department of Labor though data were below the predicted values the market regarded them as a positive bull signal for the dollar.

The nonfarm payrolls in December were up 193 thousand in December against the revised employment data for November, shown growth of 140 thousand, however analysts forecast growth up to 250 thousand.

The second significant component of this report Unemployment Rate - showed decrease in this indicator on 0,2 % from 4,9 % to 4,7 %.

After an issue of the report the dollar was up 1 % or 100 points.

Growth of factory orders in December exceeded the market’s expectation. According to the Factory orders report of the US Census Bureau of the Department of Commerce the number of the factory orders, made in the USA, was up 1.1 % in December, mainly owing to growth of durable orders and investments into means of production, the US Department of Commerce informed on Friday.

Deliveries increased essentially in December - on 2.2 %. Durable orders were up 1.8 %  while orders for means of production rose on 4.1%. Growth of factory orders exceeded the forecast of 0.9 % given by economists, polled by MarketWatch agency.

However, the positive of the above-mentioned reports has been a little bit overshadowed by weak data on University of Michigan Consumer Sentiment and ISM Business Sentiment indexes in service sector.

The final University of Michigan Consumer Sentiment Index made 91.2 in January against 91.5 in December and the initial estimation in the middle of January 94.3, according to press messages. Economists expected that the sentiment index would make 93.1 in a final reading. The index of current conditions raised up to 113.2 against 109.1 in December and 112.0 in the middle of January. The index of expectations fell up to 79.0 from 80.2 in December and 81.5 in the middle of January.

Rates of growth in service sector of the USA went down in January, but remained high. The business index of financial services, building sector, retail trade and other service sectors, made by Institute for Supply Management, dropped to 56.8 in January against 61 in December. Values of the index above 50 mean expansion.

The increase in hiring of new employees and increase of incomes can rise essentially expenses in the 1 quarter as a result of works on removal of hurricanes’ consequences a year ago, economists inform. Wal-Mart Stores Inc., the world's largest company of retail trade, informed that the volume of its sales in January was in line with the forecasts as a holiday trade, warm temperatures and consumer confidence rise have increased consumer expenses.

Friday recommendations ill hold good:

“Eurodollar quotations have approached closely to key levels 1,2040-1,2000. Expectation of the further rate increase and positive nonfarm payrolls data enable dollar to press the support levels. There is quite probable correction deepening. Therefore Shorts on euro under these levels with 1 purpose 1,1915 and the perspective purpose 1,1720 are important.

Pound sterling the same levels - Shorts from a support level of 1,7635, 1 purpose - 1,7545, 2 purpose - 1,7415.”        

Shorts according to these recommendations are kept:

Euro: stop is moved to a distance of 100 points from a current level.

Pound sterling the 1 purpose has been reached - 1,7545, it is possible to close at a current rate, a position with the purpose 1,7415 is kept, stop is moved to make-out at an entry line.