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Forex · News · Forex Forecasts

NEWS / Forex Forecasts

Market’s daily review

11:47 03/06/2006

On Friday rates of the basic currencies traded in the limited price ranges.

On the one hand, the American currency was supported by data, which showed that service sector of the US economy in February has grown at faster rates than it was expected.

 

Rates of growth in service sector of the USA increased in February as consumer and corporate expenses stimulated the basic part of economy.

ISM index in service sector, including financial services, construction and retail sales companies, rose up to 60.1 against 56.8 in January. The parameter was better than the expected level.

The important component of the survey, which reflects an employment level, also grew from a level 51.1 up to 58.2.

These data testify to that forecasts of rates of the US economic growth in the first quarter of current year from +4.0 % up to +4.5 % for a year can be justified.

 

As University of Michigan research showed the consumer sentiment in the USA decreased a little at the end of February.

The index dipped to 86.7 against 87.4 at the beginning of month. It was at a level of 91.2 in January.

Economists forecast small increase of the index up to 87.7. The index of current conditions has dipped to 105.6 against 107.7 at the beginning of the month and 110.3 in January.

The index of expectations improved up to 74.5 against 74.4 and 78.9 in January.

 

On the other hand, the euro rate was supported against dollar by statements of ECB President Trichet, who declared that the bank continued to watch closely a situation connected with development of inflation in a region, and would do its best for maintenance of price stability.

Additional support to the single European currency is rendered by favorable data in Eurozone.

 

The business index in Eurozone increases at confident rates in February.

Purchasing Manager Index in service sphere in February rose up to 58,2 from 57,0 in January.

Analysts forecast growth of 57,2.

 

The business index in service sphere of Germany in February fell to 57,8 points from 58,1 in January. Falling of the index was unexpected. Economists assumed that the index would grow up to 58,4.

 

The pound also grew on strong data from the UK, which showed that the service sector increased rates of development in February.

The business index in service sphere in Great Britain for February made 58.9 at the forecast of 59.6.

The previous value of the given index made 57.0.

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