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Forex · News · Forex Forecasts

NEWS / Forex Forecasts

EURUSD, GBPUSD. The market bought up dollars on a background of weak news over EU and under impression of Friday data over the USA.

21:55 09/05/2006

Today began with the dollar strengthening after the day off under impression of Friday data traders started to buy up the dollars actively.

Let's remind on Friday the Employment Report for August of the Bureau of Labor Statistics, U.S. Department of Labor was positive and caused sales of the basic world currencies against the dollar. The new nonfarm payrolls in economy increased 128 000, in comparison with growth of this parameter in June by 121 000 (the revised data).

However this day there was a coincidence, which happens seldom, an issue of data on Employment coincided with an issue of data of ISM index. And it became a small surprise for traders - ISM negative data returned dollar quotations at initial positions as value of the index decreased 0,2 points.

If Friday tenders were a little bit emotional, today traders again paid attention to the positive report on the labor market of the USA. Dollar has become stronger duringa day more than by 100 points.

Weak fundamental parameters on the Eurozone and Great Britain put pressure upon the euro and pound sterling.

The service sector of Europe, beginning from bank sector and up to telecommunication, showed in August the minimal growth for 7 months on a background of increase of ECB rates and a rise in oil prices.

According to the issued data, PMI in service sector of Eurozone was reduced to 57,1 against 57,9 in July. Economists forecast value of the index at 57,5, according to poll by Bloomberg.

Growth of economy of the Eurozone probably reached the peak in first half of a year when it was maximal since 2000. Since this moment, various data reflect reduction of consumer and business confidence, and also decrease in sector of a manufacturing industry.

As PMI of Great Britain in service sector reduced to 56,5 in August against 57,5. The component of employment reduced to 53,0 against 54,0, and the component of the paid prices decreased to 53,6 against 53,7. The index of business expectations dipped to 63,9, a minimum almost for a year.

PMI in service sector of Italy in August decreased to 57,6 against 58,6 in July.

PMI in service sector of France grew up to 61,3 against 61,0 in July. PMI in service sector of Germany declined to 54,3 in August against 56,1 in July.

Tomorrow there is expected a day rich in news.

Over the United States there are expected data on productivity and costs per unit. These data in addition to data about gross domestic product characterize rates of production and economy as a whole.

Except for this the issue of ISM service index, describing level of business moods in sphere of tourism, service and other kinds of business, rendering services, is expected.

As a whole situation remains uncertain, chances are considered as 50 to 50. It is necessary to observe current news. While we remain outside the market.

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19/12 21.15
TickerBidAsk
USD/CHF1.15601.1562
GBP/USD1.99541.9956
USD/JPY113.4100113.4300
EUR/USD1.43521.4354
AUD/USD0.85770.8581
USD/CAD1.00521.0056
EUR/GBP0.71920.7194
EUR/CHF1.65951.6599
EUR/JPY162.7900162.8300
GBP/JPY226.3000226.3600
GBP/CHF2.30702.3080
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