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Forex · News · Forex Forecasts

NEWS / Forex Forecasts

Market’s daily review

11:47 05/24/2006

At yesterday's tenders rates of the basic currencies were consolidated.

Some stabilization of rates is promoted by expectation of publications of the important economic data this week.

The investors’ attention is focused on the publication of durable orders index and data about new home sales in the USA.

There is also expected the issue of business index of IFO institute in Germany.

 

At the same time the American currency has got small support owing to that Bernanke again confirmed FRS position declared on May, 10th, according to which "additional firming" can be necessary.

 

In turn, the euro continues to get support on a background of expectations of the further rates increase in an eurozone.

Comments of ECB Governing Council member Mersh on necessity of the further increase of the rate have supported these expectations. Mersh also added that as for inflation there is necessary "great vigilance".

 

However the ambiguous data, published on Tuesday from Eurozone and the USA have been ignored.

 

According to German Federal bureau of statistics GDP rise in Germany in the first quarter of 2006 made 0.4 % in comparison with the last quarter.

Annual GDP rise made 2.9 % in the first quarter.

Indicators have been completely in line with forecasts.

Annual GDP rise of Germany made 1.1 % in the fourth quarter of 2005.

Gross domestic product grew in many respects owing to increase in private consumption in Germany in the first quarter, 2006 and it was the most significant for more than a year.

 

The business sentiment index in France in May decreased to 107 in comparison with 109 in April.

April indicator has been revised. It was informed earlier that in April sentiment index made 108.

 

The consumer expenses index in France for April made +0.7 %.

The previous value of the given index has been revised from -0.6 % to -0.4 %.

 

Consumers confidence index in Italy in May rose 107.6 against the revised April value 106.0.

 

The volume of orders in the industry of Eurozone in March reduced unexpectedly on a background of reduction of metals and metal products orders.

The factory orders index in Eurozone dropped 2.4 % in March in comparison with February, but was up 12.1 % year over year.

Economists expected that in March the volume of orders would grow 0.2 % in comparison with February, and 13.3 % y/y.

The previous value of the given index made +3.4 % for a month, +14.0 % for a year.

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