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Forex · News · Forex Forecasts

NEWS / Forex Forecasts

EURUSD, GBPUSD Quotations show extreme degree of volatility on a background contradictory news.

22:43 05/18/2006

After the agiotage period of increased market’s emotionality connected with political risks the market again reacts sensitively to economic news.

 

Unexpected decrease in week data on the US labor market and low indicators of the American index of leading indicators - The Conference Board has put pressure upon the dollar.

 

Initial jobless claims were up 42,000 to 367,000 for a week for May, 13th, however growth happened basically on a background of partial closing of representation in Puerto Rico as Department of Labor has informed today.

 

It is a maximum level since the beginning of October when unemployment rise happened after hurricanes Catharine and Rita. It was the maximal week growth since the beginning of September. Not including 46,000 new jobless claims connected with Puerto Rico, initial claims would make approximately 312000 the representative of Department of Labor informed. Jobless claims week average for a week by May, 13th  - +15750 up to 333250.

 

The US economy slows down rates of growth after active first quarter, Conference Board has declared today.

 

The index of leading indicators was down 0.1 % in April, three of 10 indicators grew. Building permits, orders for the equipment and consumer expectations decreased most strongly.

 

The index of leading indicators has been revised to +0.4 % in March. Economists forecast growth of the index on 0.1 % in April, according to MarketWatch survey.

 

Index of Coincident Indicators was up 0.2 %, and Index of Lagging Indicators rose 0.3 %.

 

"Taking into account that oil prices are still approximately at $70, and interest rates gradually grow, the economy will hardly grow", Ken Goldstein, the economist of private research group said.

 

For the past 6 months the index was up 1.5 %, 8 of 10 indicators reflected growth. "The economy should continue to grow moderately in the near future", the group declared. "Little rise since December was not very steady".

  

However Philadelphia Reserve Bank index has supported the dollar and leveled a negative on news about labor market and Conference Board.

The business index improved 1,2 points, 14.4 against 13.2 in April. Paid prices index 55.3 against 29.0 in April.

 

The recommendations, the euro uptrend has reduced its dynamics a little. The dollar becomes stronger while within the limits of correction. Now chances of bulls and bears in stock exchange are approximately equal, therefore while we remain outside the market.

 

 

 

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