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Forex · News · Forex Forecasts

NEWS / Forex Forecasts

Market’s daily review

11:47 05/22/2006

The tendency of growth of a dollar exchange rate against the basic currencies proceeded on Friday. This process was promoted by drop in the world prices for oil and metals.

Growth of the American currency was partly caused by uncertainty in the markets, and the amplified investors’ unwillingness to risk.

Statements of FRS representatives about the further interest rates increase also supported a dollar exchange rate.

 

At the same time, the Japanese currency decreased at Friday tenders after Bank of Japan Executive Fukui told that the Bank does not hurry up with increase of the rate.

Fukui also said that despite business activity rise in the country now, he expects delay of rates of economic growth.

 

In turn, growth of the dollar/yen rate puts pressure upon the euro rate against dollar.

 

On Friday in Tokyo the next two-day meeting of Bank of Japan Board finished. As it was expected members of bank’s board unanimously voted for preservation of a current monetary policy. Thus, the overnight rate was left at a level of 0.00 %.

 

Preliminary value of GDP index in Japan for the first quarter made +0.5 % for a quarter, +1.9 % for a year.

Economists expected weaker GDP gain on 0.3 % for a quarter and on 1.1 % y/y.

The previous value made +1.3 % for a quarter, +5.4 % for a year.

 

As the office of national statistics informed deficit of the budget in Great Britain for April made -1.78 billion pounds at the forecast -1.5 billion pounds. These data testify that the black ink of the governmental budget was more than the expected level.

 

Producer prices in Germany the last month reached a top since June, 1982.

As Federal office of statistics informed the producer prices index in Germany on a monthly basis grew 1 %. Year over year the prices were up 6.1 %.

The previous value made +0.5 % for a month, +5.9 % for a year.

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