On Friday the tenders on forex were calm, if not for the bear jump against the dollar in the beginning of the American session.

Dollar dump in the beginning of the American session was observed in the market after issue New York National Association of Purchasing managers index, it decreased in August, 2007 to 445,0 points from 446,4 the last month.

The average index of current conditions grew up to 47,3 points from 39,7. The index of economic expectations for half a year reduced to 60,0 points from 62,5.

However then during trading session the dollar compensated positions and closed within the limits of narrow price corridor of 1,356-1,3685 on euro, of a short-term sideways, which was relevant during last week.

Dollar Bulls got support after an issue of the report on a core price index of personal consumption which is one of the basic indicators of inflationary background. The average chain index in July was up 0,2 %, against a similar parameter in June when value of the index rose by 0,1 %, and in comparison with parameters of this period in 2006 the price index grew by 2,0 %.

As many analysts consider high level of inflationary index can become one of arguments for supporters of more strict measures by FOMC. As a rule, chances that the Federal Reserve will alleviate policy of regulation after publication of reports on strengthening of inflationary pressure, decrease noticeably.

Therefore market’s reaction was quite natural: traders started to sell dollar against the basic world currencies, at once the dollar lost 50 points or approximately 0.5% against euro.

Statements of the US President George Bush and FRS Head Ben Bernanke were source of optimism for dollar players.

Ben Bernanke declared on a symposium, organized in Friday by Kansas FRB, that FOMC watches closely an economic situation and is ready to act if conditions in the markets worsen.

FRS will not allow unfavorable influences on the economy, caused by faults in work of the financial markets, to influence negatively on economical growth.

Despite increased inflationary background in the market investors’ expectation about the prompt drop in the rate amplify. A vivid example to it is decrease in quotations of tools in the market of futures for the interest rate.

Investors expect that on September, 18th, at next FOMC session the federal funds rate - FRS basic rate, decreases from 5,25 % to 5,0 % per annum.

Bernanke also admitted that crisis in the market of the real estate and crisis of non-payments in mortgage lending continue to influence negatively on the financial markets as a whole.

However, according to his words, despite proceeding recession in the market of the real estate, the economy in first half of this year grew at the moderate rates.

On Friday George Bush offered a number of steps for support of the market of the real estate, in particular to help the victims of crisis in the market of the real estate. He also tried to convince Congress members to accept a number of legislative projects in sphere of housing construction, to make corrections of mistakes in laws, which led to skews in mortgage lending.

To prevent crisis in sector of subprime credits which are loans of borrowers with a low level of credit capacity, it is necessary the help of the government. Thus Bush noted that the government will not support speculators in housing market and is not responsible for risky operations of investors.

According to Bush, shortly FHA - Federal housing construction - will start the new program "FHA Secure" owing to which house owners with good credit history who, nevertheless, were not able to pay current percentage payments, will be able to refinance their credits by means of mortgages, insured by FHA.

Besides George Bush’s and Ben Bernanke's statements dollar bulls received support also after an issue of positive current fundamental news over the USA.

Personal incomes of Americans in July were up 0,5 % m/m against +0,4 % in June. Personal consumption in the USA in July was up 0,4 % in comparison with the last month.

The investors’ mood was up as well after publication of unexpectedly strong data on factory orders.

According to Department of Commerce Factory Orders index showing dynamics of industrial orders in the USA for July rose more than it was expected by the market - by 3,7 percents in comparison with parameters of previous month when it grew on the revised data only by one percent. Earlier it was informed on rise in June by 0,6 percents.

The analysts surveyed by Reuters, predicted growth of orders volume in July by 0,8%.

Durable goods orders, which service life makes not less than three years, increased in July, according to the revised data, by 6,0%. Earlier it was informed on rise of this parameter by 5,9%.

The ratio of volume of stocks to sales made 1,21 in July in comparison with 1,24 a month ago.

As a whole during the last week trading sessions were not quite active, investors do not hurry up to open long-term positions before a week rich in the news. We remind that on forthcoming week the first monthly economic reports are expected - the employment report in August in the USA and Institute for Supply Management indexes.

While we remain off the market.