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Forex · News · Forex Forecasts

NEWS / Forex Forecasts

Market’s daily review

22:43 02/27/2006

The American currency finished a week session with increase against the majority of world currencies. However, the Japanese yen was an exception, having finished Friday tenders with increase against dollar. Dealers say that the yen rate is still supported by speculations about the forthcoming toughening of a monetary policy by Bank of Japan.

The American currency rose at the tenders on Friday, despite a hike in oil prices and ambiguous economic data.

 

According to the published data of the US Department of Commerce new durable goods orders were down 10,2 % in January as orders in an aircraft industry have fallen, and the companies are going to reduce charges.

Decrease was maximal since July, 2000, and higher than it was predicted by economists -2,5 % when the volume of orders was down 14,2 %.

December data have been revised up to +2,5 % from 1,8 % earlier.

Except for transport, orders in January were up 0.6 % against December value of +1.9 %.

 

In turn, positive data on IFO index and higher inflation in comparison with the forecasts could not support the single European currency.

 

In Germany import price index in January was up 0.9 % for a month while for a year the growth made 6.8 % in comparison with annual growth of 6.8 % in December.

In January export rose in price on 0.2 % for a month while for a year growth made 1.8 % in comparison with annual growth of 1.9 % in December.

 

According to data of research institute ISAE, the business confidence index in Italy in  a manufacturing industry fell to, 92,3 in February in comparison with 92,5 in January. Economists forecast growth up to 93,0.

 

The British currency also dipped despite good GDP data.

According to last data of the National bureau of statistics of the UK quarter growth of gross domestic product in the fourth quarter, as well as it was informed earlier, made 0,6 %, and annual growth of gross domestic product has been revised to increase and made 1,8 % against an initial estimation of 1,7 %.

The UK GDP for 2005 was up 1,8 %. It is the lowest level of a gain for 13 years. In 2004 gross domestic product was up 3,2 %.

 

Revision to increase of an estimation of economic growth will likely to become one more argument for preservation of interest rates without changes for Monetary Policy Committee of Bank of England.

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