EURUSD, GBPUSD. Euro has won back losses of last week.
20:21 05/16/2007

This week euro bulls has to win back. Yesterday after the block of fundamental news over the USA traders sold dollar actively against euro and pound sterling.

One of the basic indicators of inflation, consumer price index - CPI showed decrease in the total rate of inflation that is quite good factor for the US economy. We remind that indexes of wholesale prices also demonstrated drop.

 

In April despite hike of petrol prices which reason t, in experts’ opinion, is approach of a summer season of the increased fuel demand, the prices for other goods remained « moderate-constrained» according to the US Department of Labor.

 

According to the report of the Bureau of Statistics of Department in April retail prices were up 0,4 % against hike of prices in March by 0,6 %.

 

«The core aspect of this message in that growth of the basic inflation continues to decrease, that can serve as ground for FRS at making decision concerning federal funds rates», - the group economist of economic edition Naroff considers. «Chances that FRS will decrease the rate though remain still low, but start to increase gradually».

 

Investors from Wall Street expect that data on inflation on decrease in rates of its growth will accelerate day when the Federal Reserve could start to reduce interest rates and to start actions which would stimulate industrial growth and would help to cope with the total recession in economy and the crisis in sphere of the market of the real estate and the building industry connected with it.

 

Dow-Jones industrial index was closed in plus at 37 points after an issue of CPI, and reached a record mark of 13 384 points. Reduction in inflation us good news for real sector of economy,  but not for dollar bulls at forex.

 

The dollar tested pressure after publication of data on Net Foreign Purchases, despite in March the volume of investments according to Treasury was higher than in February, however it was below expected levels, 67,6 billion dollars in March against 58,1 billion dollars in February and 75 billion dollars expected.

 

As a whole market moods remain neutral, eurodollar quotations entered a corridor of the prices 1,35 - 1,365 dollars for euro. While we remain outside the market.

 


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