USDCHF,USDCAD Yesterday's American data added negative against dollar by OpenForex.com

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USDCHF,USDCAD Yesterday's American data added negative against dollar

21:43 04/18/2007

After publication of series of varied American data the dollar rate kept its downturn vs. all basic currencies.
Let's remind that yesterday's data did not add enthusiasm to dollar "bulls". Yesterday's data were issued on a background of investors' anxiety concerning current condition of American economy.
Drop in industrial production and also lower value of "net" CPI decreased even more the expectations of possible rise in FRS interest rates.
Let's remind that CPI in the USA for March made +0.6%, at the forecast +0.6% for a month and previous value +0.4% for a month.
CPI except for food and energy prices in the USA for March made +0.1%, at the forecast +0.2% for a month and previous value +0.2% for a month.
Thus industrial production index in the USA for March made 0.2%, at forecast +0.1%. Previous value was revised from +1.0% to +0.8%. Capacity utilization in the USA for March made 81.4, at forecast 81.9. Previous value was revised from 82.0 to 81.6.
Data from building sector of economy were varied. Housing starts in the USA for March made 1.518 bln., at forecast 1.500 bln. and previous value 1.525 bln.
Building permits in the USA for March made 1.544 bln. at forecast 1.515 bln. and previous value 1.532 bln.
After two days rise of dollar/yen rate yesterday the pair dipped from 119.80 to 118.80. Tonight at Asian session the rate continued decrease to 118.51.
Let's remind that the pair is under pressure of not only yesterday's weak data over the US economy but of publication of final value of index of leading indicators in Japan in February, which made 27.3, at forecast 30.0 and previous value 30.0.
However another indicator was twice as much experts' forecast. Final value of index of coinciding indicators in Japan in February made 30.0, at forecast 16.7 and previous value 16.7.
We again remind that basic currency pairs have already reached very important levels of resistance, where probability if dollar favorable correction seems to us quite significant. While we still recommend to keep off the market.