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Forex · News · Forex Forecasts

NEWS / Forex Forecasts

Market’s daily review

11:47 04/27/2006

Expecting statement of FRS Chairman Bernanke the American currency is under pressure against the basic currencies.

The dollar exchange rate decreases even despite positive data in the USA, which showed growth of both durable goods orders and new home sales.

 

On Wednesday the US Department of Commerce informed that new durable goods orders in March were up 6.1 % against February growth of 2.6 %.

Growth of new orders was maximal since May, 2005 and much more above the forecast.

Economists expected that durable goods orders would grow 1.8 %

 

As the US Department of Commerce informed new home sales in the USA were restored in March, having increased as much as possible for almost 12 years owing to purchases of cheap houses.

Sales were up 13.8 %, maximally since April, 1993, having exceeded forecasts up to annual value 1.213 million houses against 1.066 million in February.

It was expected that the given parameter would make 1140000.

 

According to the published economic review of the US Federal reserve system - Beige Book - which showed that despite prompt growth of energy expenses, rise in goods prices and wage- push have not been observed. The given fact, in analysts’ opinion, does not give the serious bases for continuation of aggressive interest rates increase in the USA.

 

According to Eurostat agency factory orders in February were up 2.7 % m/m, and up 13.3 % y/y.

Growth of orders in February exceeded economists’ forecasts, who expected growth of the given parameter on 0.8 % for a month, and annual growth on 10.9 %.

January data have been revised from -5.9 % up to -5.7 % for a month, from +9.7 % up to 10.2 % for a year.

 

Growth of demand in February should affect positively the industry as growth of industrial production in February was zero.

 

The index of industrial production in Eurozone in February was below the forecast and made 0.0 % for a month, +3.2 % for a year.

The previous value of the given index has been revised from 0.0 % up to +0.2 % in monthly calculation, and from +2.5 % up to +3.0 % year over year.

 

In the first quarter 2006 the economy of Great Britain grew at slower rates than it was expected, because of slowdown of rates of production growth in service sphere.

According to National bureau of statistics of the UK preliminary value of GDP index for the first quarter of 2006 made +0.6 % for a quarter.

In comparison with the 4 quarter of 2005 quarter rates of GDP rise of Great Britain did not change.

Annual GDP rise in the first quarter made 2.2 % in comparison with 1.8 % in 4 quarter.

Economists assumed that quarter GDP rise in the first quarter would make 0.7 %, and annual one - 2.2 %.

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