For first two days of the week the dollar has practically returned losses of the end of the last week.

Movement in correction of uptrend on euro, begun on Monday, has got an additional impulse yesterday after publication of the Productivity and Costs report of Department of Labour for 4 quarter 2005.

Quarterly labor productivity has shown falling on 0.5% against growth on 2,5 % in the 3 quarter. It became the first falling of this fundamental indicator for last 3 years, since 2003.

On the other hand, production costs per a unit were up 3,3 % in comparison with previous growth on 1,3 % in 3 quarter. It is the highest level of costs since the beginning of this year.

Costs rise increases inflationary pressure. Weak data under Productivity and Costs report have been regarded by the market as the factor compelling FRS to proceed policy of stable increase of FRS rate - federal funds rates for inflation restraint in controllable limits.

And in turn it has given a signal for dollar bulls to start sales of the basic currencies against dollar.

Change of productivity promoted sales on a security market, which was regarded on more rigid monetary policy of FOMC for struggle against inflationary pressure.

Treasury bonds were closed maximally higher after three-day sales, which have raised US 10-years bond yield on more than 16 basic points.

Change of data in comparison with the last quarters have brought economy out on «more sensible path» with prospects of growth and increase in incomes, Michael Englund, a leading economist at Action Economics, has declared. The productivity report together with signs of strengthening of a labor market «should spur growth of interest rates at next three meetings of Federal Open Market Committee», John Riding, Bear Stearns group economist has noted.

Saint Louis Federal Reserve Bank Head William Pool declared last night that the central bank could raise the interest rate in future if economic growth was strong.

Treasury 10 years bonds yield has reached the maximal value since the middle of 2004, above 4,77 %, that also affected positively the dollar.

Stabilization in the oil market has weakened pressure upon dollar. Reduction of prices on oil futures with time of execution in April has been observed the second day. Yesterday on NYMEX futures were closed with downturn to $61.45 for barrel vs. the opening price of $62,45 for barrel.

The oil prices dipped at tenders in Asia. Drop in prices was caused by reduction of intensity in Iran and OPEC guarantees that the Iranian problem will not affect volumes of oil delivery.

Technical picture.

Quotations have again come back to a balance zone.

The currency corridor 1,1850-1,1950, which prices entered at the beginning of February, continues to remain important.

Tomorrow and the day after tomorrow the market expects the main events: Trade Balance and Employment of the USA reports. While we remain outside of the market.