On Friday the dollar tested the next blow, poor data on housing market in the USA weakened the dollar almost by 100 points on euro and on pound sterling.

Data, published by Department of Commerce yesterday - Housing Starts and Building Permits for October showed a record falling, these market indicators did not show such low parameters last 6 years.

Housing starts decreased 14.6 % to seasonally corrected value 1.486 million. This is the weakest value since July, 2000 and it is 27.4 % below levels of October, 2005.

Building Permits - the indicator of the future activity - reduced seasonally corrected 6.3 % m/m and 28 % y/y up to 1.535 million that became the 9-th decrease in a row and a minimum level since December, 1997.

Since January of this year in the building market and the market of the real estate the descending trend of activity is observed. Leading analytical agencies forecast falling of activity in this segment of economy by 4,5 % in October, however traders simply did not expect so strong collapse of the market.

It is quite possible that so noticeable blow will force the market to doubt in soft landing of economy on which FRS Board of governors hopes, however, illusive hope that FRS can return to a cycle of increase of the rate today has finally vanished. All this will affect negatively dollar position in the near future.

It is most likely that the dollar will test strong pressure for these last weeks of a year. Especially on a background of determination of two world's largest Central Banks - Bank of Japan and the European Central Bank to raise rates.

At the press-conference the head of Bank of Japan Fukui declared that at preservation of rates of economic growth and in case of steady background of inflationary pressure - the Bank of Japan will start to raise rates gradually.

However, he has once again emphasized that will do it gradually and proceeding from current conditions on inflation. He also noted that in case of economic growth inflationary risks increase, but now inflation in Japan is in controllable limits.

ECB management is assured that the international value of euro can grow ECB vice-president Lukas Papademos declared. "We observe expansion of euro use in the world financial markets, - Papademos noted, citing as an example the international bond market. - Supporting price stability, ECB forms a basis for wider use of euro".

ECB management aspires to support confidence in single European currency, "raising potential of economic growth of Eurozone, supporting purchasing capacity of euro and integrating the European financial markets". As a result, world value of euro should grow, Papademos added.

Despite dollar falling after an issue of record-breaking low parameters on the building market of the USA the quotations remain within the limits of a price corridor. The publication of significant market indicator, - the leading indicators, giving a perspective picture of economy, is expected today, in case of low values on this indicator the dollar will test one more blow. While we remain outside the market.