Despite decrease of factory orders in the USA dollar "has practically won back" the falling, observed at the end of the last week.

Yesterday the report of the Census Bureau of the Department of Commerce for January 2006 - Factory Orders index was published. This index includes durable orders plus nondurable goods: foodstuffs. Value of last component of this index is that it gives information of economic development for short-term prospect.

According to this report volumes of factory orders were down 4,5 % that was the maximal falling of this indicator for last year.

Durable orders, such as planes, computers, washing machines decreased not so strongly, as on a preliminary estimation. Durable orders were down 9.9 % in January against initial value -10.2 %. Decrease was promoted by sharp reduction of defense and aviation orders in January.

Transport equipment orders were down 31 % in January. Machine equipment orders were down 2.4 %, and computer orders were down 0.4 %. Except for the transport equipment orders were up1.6 % in January.

However, production means orders less defense - so-called root factory orders – dropped on record-breaking 19.6 % in January. Shipments of root production means were down 19.1 %. In December the revised factory orders were revised on 1.6 % against +1.1 % earlier.

Less defense orders were down 3.3 %, the maximal drop since September 2001 as data of Department of Commerce showed. Inventories were up 0.5 %. Back orders were down 0.7 %, the first decrease for 9 months.

However this cut was not so strong as analysts expected, according to Bloomberg poll falling of orders volume was expected on 5,4 %, therefore the market’s reaction was return to an issue of negative news, which supported the dollar.

Oil market has supported dollar after 4 days growth quotations of April oil futures were closed on Friday with downturn up to $62.4 for barrel on NYMEX, against opening price of $63.16 for barrel. The reason of drop in oil futures became news that OPEC would keep daytime quotas of production at a former level and hope for peace settlement of the conflict around Iranian nuclear program without taking the case to Security Council of the United Nations.

Negative reports over the European Union affected quotations of the European currencies against dollar.

Retail sales in Eurozone’s countries dipped maximally in February for last 8 months that causes anxieties about increase of energy expenses and reduction of consumer expenses as PMI index showed, published by Bloomberg. The seasonally-weighed index of sales in Eurozone decreased up to 49.6, the minimal value since June, against 49.7 in January, provoked, to the greatest degree, by decrease in Italy. Value of the index below 50 means reduction of a sales volume.

The euro uptrend was corrected below a level 1,1950, thus, the price has again entered a zone of balance 1,1850-1,1950. Before two key reports of this week traders fix profit and close long positions.

Let's remind that on Thursday the publication of Trade Balance report of the Census Bureau and the Bureau of Economic Analysis of the US Department of Commerce for January, 2006 takes place.

According to the previous data the report showed expansion of trade balance import - export up to $65,7 billion. This time market experts forecast expansion of trade balance even more widely up to $67,0 billion

And on Friday the Employment report from the Bureau of Labor Statistics, U.S. Department of Labor takes place. According to the previous data the report showed cut of quantity of workplaces on 193?, and growth of the interest rate of employment up to 4,7 %. This time analysts assume growth of workplaces up to 210?, and the rate constant.

Therefore it is better to remain outside of the market.