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Forex · News · Forex Forecasts

NEWS / Forex Forecasts

Market’s daily review

11:47 02/20/2006

The American currency finished the last week session with downturn.

In analysts’ opinion recently the dollar reacts to negative news over the USA much more than to positive one.

So at tenders on Friday the dollar lost a part of the won positions against euro after data on University of Michigan consumer sentiment index were below forecasts.

In its turn, published on Friday, data on producer price index in the USA for January, which were better than the forecasts, could not support the American currency.

 

According to University of Michigan research consumer sentiment in the USA dipped at the beginning of February on a background of a rise in petroleum prices.

Preliminary data on University of Michigan consumer sentiment showed that the basic index dropped to 87.4 in February against 91.2 in January that is below the value of 92.5predicted by economists.

Index falling was unexpected for the market’s players. This fact, and also slack market before long days off in the USA promoted sharp movement of rates.

 

According to the US Department of Labor the producer prices in the USA in January grew more considerably than was predicted, growth in automobile sector, the electric equipment and medicines was the highest.

The total producer price index in the USA in January was up 0.3 % in comparison with the last month.

On the refined data, in December, 2005 growth of the index made 0.6 % instead of 0.9 % as it was informed earlier.

Economists forecast that the total producer price index in January would be up 0.3 %, and basic - up 0.2 %.

The total producer price index, excluding prices for foodstuffs and energy carriers, was up 0.4 %, twice as much as economists’ forecasts. This growth became the most significant since January, 2005.

In December growth of a basic consumer price index made 0.1 %, as well as was informed earlier.

 

As the Ministry of Finance of France informed on Friday deficiency of the current account of the balance of payment of the country showed growth up to 4.499 billion euro in December against 4.377 billion in November.

As a whole deficit for 2005 made 33.692 billion euro against 6.521 billion in 2004.

The export volume of the French goods made 31.0 billion euro in December in comparison with 31.2 billion euro in November, and import raised up to 34.6 billion euro from 34.0 billion euro in November.

 

The number of jobs in a private sector of France in the fourth quarter grew a little in comparison with the last quarter. Employment rise in a building sector offset reduction of employment in industrial sphere, Insee informed on Friday.

The number of jobs in a private sector of France in the fourth quarter made 15.48 million.

This indicator is up 0.1 % in comparison with the third quarter of 2005 and up 0.4 % in comparison with the fourth quarter of 2004.

According to Eurostat agency industrial outputs in Eurozone grew slightly in December, growth in November has been revised to increase.

Industrial production in Eurozone in December was up 0.1 % in comparison with November and up 2.5 % in comparison with December, 2004.

Growth is observed the second straight month owing to growth of manufacture of energy carriers.

Economists assumed that manufacture would remain without change in comparison with the last month and was up 0.2 m/m and 2.2 % in comparison with the same period of the last year.

Indicators for November have been revised to increase.

According to the refined data manufacture was up 1.4 % in comparison with the last month and up 2.9 % in comparison with the same period of the last year. Earlier it was considered that the indicator was up 1.3 % and 2.6 %, correspondingly.

 

Manufacture growth within two months enables to hope for acceleration of economic growth in Eurozone last quarter of 2005 after rather safe third quarter.

In all countries of European Union industrial production was up 0.3 % in comparison with the last month and up 2.5 % in comparison with December of the last year.

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