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Forex · News · Forex Forecasts

NEWS / Forex Forecasts

Market’s daily review

15:33 05/18/2006

At tenders on Wednesday the dollar exchange rate hiked against the basic world currencies that was promoted by the officials’ statements.

Dollar rise began after words of Minister of Finance of France Terri Breton that though the Eurozone’s economy could digest last euro strengthening its} further growth will be undesirable. Breton also declared that it is necessary to do “all the best” for prevention of excessive euro strengthening against dollar.

 

In its turn, the US Minister of Finance declared that the opportunity of catastrophically sharp falling of a dollar exchange rate is excluded.

 

Thus, the American currency grew almost 200 points to euro.

In its turn, powerful dollar rally against euro has led other currencies.

 

The data, published on Wednesday in the USA, also supported a dollar exchange rate as growth of inflation increases probability of the further growth of interest rates in the country.

 

According to data of US Department of Labor in April hike of energy prices pushed consumer prices upwards in the USA.

Thus, the consumer price index in the USA in April was up 0.6 % for a month against March growth of 0.4 %.

Economists expected that the gain of the given index would make 0.5 %.

 

The consumer price index excluding food and energy in the USA unexpectedly grew 0.3 % because of a rise in rent prices.

Growth of net CPI on 0.2 % was predicted.

 

Year over year parameters of the total and net CPI in April were up 3.5 % and 2.3 % accordingly, against similar parameters of the last month of 3.4 % and 2.1 %.

 

Yesterday the report of Bank of England MPC meeting dated May, 3-4th was published.

The report showed that six committee members, including the Head of Bank of King,voted for preservation of the rate without changes at a level of 4.50 %. One (Nickell) supported reduction of the rate by 0.25 %, and another (Walton) voted for the rate increase by 0.25 %.

Such result of voting when all possible variants were stated, is observed for the first time almost for eight years, and became unexpectedness for the majority of economists.

Committee members pointed out that rates of production growth by results of surveys have grown above trend level and prospects of production and economic rise have improved.

 

According to the Cabinet of National Statistics of the UK jobless claims in April were up 7700 against the revised March growth of 12800.

It was expected that change of number of jobless in Great Britain for April would make +6800.

 

The unemployment rate in Great Britain remained at a former level of 3.0 %.

 

The index of average earnings in Great Britain for three months including March made +4.2 % for a year at the forecast of +4.3 % for a year.

The previous value of the given index has been revised from +4.2 % up to +4.1 % in annual calculation.

 

According to Eurostat data the consumer price index in Eurozone in April was up 0.7 % in comparison with March.

In annual calculation growth of the index made 2.4 %.

The previous value of the given index made +0.6 % for a month, +2.2 % for a year.

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