 |
 Customer quotes |
 |
| [an error occurred while processing this directive] |
|
|
|
 |
|
|
 |
|
|
|
|
|
|
|
|
|
Forex · News · Forex ForecastsNEWS / Forex Forecasts |
|
|
|
|
|
|
|
EURUSD, GBPUSD Fed's Beige Book survey showed dull rise of economy that affected negatively dollar rate, now market expects FOMC decision on rates.
|
|
14:01 04/26/2007
|
|
Going upwards slowly the euro has tested historical price top - level 1,3360 dollars for one euro. It is the highest price the euro reached only once in the end of 2004.
Yesterday in the center of market's attention there was survey of analytical department of FRS Governing Council on current economical situation and prospects of development of the country. It is so-called Fed's Beige Book.
FRS pointed out slack rise of economy during last weeks, on a background of decreasing market of real estate and stagnation connected with it in the sector of building industry. That influenced negatively on the dollar rate on FOREX.
Federal Reserve Banks of almost all 12 regions of Reserve System of the USA noted "modest and moderate rates of economical rise". In the survey it is also indicated that the level of inflation remains "quite stable".
The exclusion was Minneapolis FRB, where there was observed "steady growth" and Dallas FRB, which characterized the economical activity as "moderate strong".
Data of this report will be discussed at FOMC meeting, which will take place in two weeks - on May, 9. Majority of analysts suppose that FRS will reduce federal funds rates and will leave the rate at former level of 5.25% per annum.
FRS Chairman Ben Bernanke is sure that the biggest risk for economy now is that level of inflation does not show a downward tendency. He hopes that on a background of downturn in economy inflationary background will weaken also. He also supposes that the rates should be held, taking into account that slowing down economy has not affected labor market yet, as last employment data showed the level of unemployment is decreasing.
The consumer potential of home market of the USA is also at a good level. In Beige Book there was indicated that retails were "confident" in majority of regions of federal banks.
FRS sees weakness in production first of all in sharp downturn of housing market that led to recession in building industry, furniture production and durable goods connected with house building.
Rise in oil prices also puts pressure on the dollar. Oil futures on NYMEX rose yesterday up to 66 dollars a barrel. Rise in oil futures were promoted by falling of petrol stocks for a week ended on April, 20. Petrol stocks fell by 2.8 bln. barrels, having shown the lowest level of stocks since October, 2005.
Despite growth of crude oil stocks oil traders concentrated their attention on petrol stocks expecting seasonal increase in demand for car fuel in the beginning of summer.
As a whole market moods are still against the dollar. However expecting FOMC decision on federal funds rates quotations will likely consolidate near reached levels. Therefore while remain off the market.
|
|
 Printer-Friendly Version
 Send This Page
 Add to Favorites
 Comments
|
|
|
|
|
|
|
|
|
|
 |
|
|
|
|
|
