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Forex · News · Forex Forecasts

NEWS / Forex Forecasts

USDCHF, USDCAD Dollar keeps up before publication of key data...

17:19 10/13/2006

So, despite pressure from negative data on the US trade balance for August, and also support from weekly jobless claims, dollar remained stable near three-monthly tops to euro and pound, and also near maximum levels from the beginning of year in relation to the Japanese yen.

 

Let's remind that in the center of attention yesterday there were data on the foreign trade balance of the USA for August, which showed that deficit was considerably above the forecast and reached next record-breaking high level.

So, value of the parameter in the USA made -69.9 billion dollars for August, at the forecast -66.0 billion dollars, and the previous value -68.0 billion dollars.

In analysts’ opinion, current decrease in oil quotations did not have time yet to be reflected in data on trade balance for August and consequently reduction of deficit will most likely to happen later, and will be already reflected in similar September data.

 

Other two indicators were a little bit better than the expected levels. So, the jobless claims in the USA made 308 thousand for a week by 07.10, at the forecast 310 thousand. And the previous value is revised from 302 thousand to 304 thousand.

And the federal budget in the USA made 56.0 billion dollars for September, at the forecast 53.0 billion dollars. Thus the previous value is revised from -64.6 to -64.9 billion dollars.

 

Besides a positive for dollar should be considered data of the economic review of Federal Reserve System of the USA, published yesterday, "Beige Book".

The review showed that in some regions of the country rates of growth are low, but thus in the majority of regions growth of consumer consumption was observed.

As a whole of the review demonstrated that in September growth of economy proceeded and the increase in a rate of inflation was small.

 

Drop in oil prices continues to support the dollar. So, yesterday oil quotations in the electronic tenders in New York fell to a mark of 57.22 dollars a barrel, minimal for a year.

Let's remind that on the eve, on Wednesday oil price decreased 1.12 dollars to a level 57.59 dollars a barrel.

 

For today the publication of the whole series of the extremely significant data, which can affect noticeably a market situation, is planned. So, at 12:30 GMT there will be issued:

- Retail sales in the USA for September. The forecast of +0.1 %, the previous value of +0.2 %;

- Retail sales ex auto-sales in the USA for September. The forecast -0.1 %, and the previous value +0.2 %;

- Import price index in the USA for September. The previous value of +0.8 %;

- Export price index in the USA for September. The previous value +0.4 %.

 

In the end of the American session wholesale inventories index in the USA for August will be published. The forecast +0.6 %, the previous value +0.6 %.

 

And "key" event of today's program becomes preliminary value of University of Michigan sentiment index in the USA for October, which publication is planned at 13:45 GMT. The forecast of the parameter is 86.0, and the previous value 85.4.

 

Taking into account the importance of today's publications, and also affinity of the basic currency pairs, we recommend to keep a waiting position. At support of the mentioned data, we do not exclude today correction against the dollar.

 

 

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