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Forex · News · Forex Forecasts

NEWS / Forex Forecasts

Market’s daily review

19:16 05/19/2006

At yesterday's tenders the American currency weakened a little against the basic currencies.

Weak data in the USA and falling of US Treasury notes’ yield influenced negatively on a dollar exchange rate.

Discussion of Treasury last report about international monetary policy in the Senate during which Minister of Finance John Snow again expressed dissatisfaction with rates of reforms in China, also affected has negatively the dollar.

 

At the same time, the British currency grew after the publication of positive data in Great Britain.

In turn, growth of the pound/dollar rate supported the euro rate against dollar.

Thus, during yesterday's tenders the single European currency rose almost 150 points to dollar.

 

As the Conference Board declared on Thursday the economy of the USA slows down rates of growth after active first quarter.

So the index of leading indicators in the USA, instead of expected growth, decreased 0.1 % in April.

At the same time March indicator has been revised upwardly from -0.1 % to +0.4 %.

Economists forecast growth of the index on 0.2 %.

 

According to Philadelphia Fed data rates of industrial activity rise in region accelerated unexpectedly in May, even despite growth of costs.

Thus, May became already 11-th straight month, observing growth of the index.

Philadelphia Fed index made 14.4 for May, at the forecast 12.2, and the previous value 13.2.

Thus analysts expected falling the parameter to 12.5.

 

On Thursday the Department of Labor of the USA informed that jobless claims in the USA for a week by May, 13th made 367 thousand at the forecast 318 thousand. The indicator was not only much worse than the forecast, but also reached a maximum level for the last half of a year.

 

It was expected that initial jobless claims would make 318000.

Four-week moving during a week on May, 7-13th grew 15750 up to 333250.

 

The British pound started to grow yesterday after an issue of key data on retail sales, which have shown that consumers’ spending in the country rose in April.

As National bureau of statistics of Great Britain informed retail sales in April were up 3.0 % y/y after growth of 2.8 % in March.

For a month the volume of retail sales was up 0.6 % after March growth of 0.9 %.

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