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Forex · News · Forex Forecasts

NEWS / Forex Forecasts

EURUSD, GBPUSD. Ben Bernanke's statement did not change a picture of market.

22:50 07/19/2007

Dollar quotations on currencies of the basic leading countries of the world which are quoted freely at a world foreign exchange markets, continue to balance near maximum levels. On a background of contradictory news traders’ activity is lowered.

 

Data on the US market of the real estate could not give an accurate account of this segment of economy which is still in crisis.

 

Housing starts in the USA in June grew by 2,3 % and reached a level 1,467 million a year adjusted for seasonal variations, according to{data of the US Department of Commerce. May data were revised -3,4 % up to 1,434 million a year. Earlier it was informed that the number of housing starts decreased by 2,1 % in May up to 1,474 million a year.

 

Analysts predicted that the number of housing starts in the USA in June should have decreased by 1,6 % up to 1,450 million a year. The number of starts in June dipped by 25,2 % in comparison with June, 2006.

 

However the building permits decreased in June to 1406 thousand houses from 1520 thousand houses.

 

Yesterday in the center of market’s attention there was Ben Bernanke's speech at the Congress of the USA. The basic thesis of statement of FRS Head became an estimation of economy for nearest prospects.

 

In Bernanke’s opinion growth of economy will proceed, though at the moderate rates. In 2008 growth should make on the average from 2,25 % of GDP growth this year and to 2,5 % in 2008.

 

However Bernanke warned that drop in the market of the real estate as well as the rise in energy prices is threat of economy and therefore the attention of the Federal Reserve will be concentrated on a problem of inflation.

 

Delay of economy and decline in the market of the real estate puts pressure upon the Federal Reserve and induces to reduction in rates of federal funds. However due to risks of inflation FRS will keep rates at a former level - 5,25 %, Ben Bernanke declared.

Today a number of key news over the USA, week jobless claims, leading indicators index and also an index of industrial activity in Philadelphia is expected.

The market expects an issue of negative indicators on these indexes, therefore the next impulse of dollar sales is possible today.

 

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