Thursday, February 15, 2007

Forex News: 15.02.2007 Great possibility continuation of dollar downtrend

Georgiy Fedotov, NorthFinance financial analyst: “As it was expected yesterday, dollar rate decreased toward euro and achieved 1.3156. Confident breakout of 1.3160 will indicate further movement to 1.3270.

Besides, Ben Bernanke admitted in his statement that inflation’s pace slowed down. This indicates the possibility of interest rate’s decrease this year, and this conclusion also influenced American currency. The general negative of US economic data confirms the possibility of continuing dollar downtrend.

Today there is plenty of news for the USA, and if below expectations, they negatively influence dollar rate. Traditionally, jobless claims are published on Thursday, the index is expected to fall by 2K, from 311K to 309. NY Fed Empire State manufacturing index will also draw attention, which is expected to rise from 9.1 to 10.5.

TICS will also fall, from $68.4bln to 59bln. The index of industrial production was 0.4% in the preceding month, it is expected to fall by 0.0%. Philadelphia Fed index is expected to decrease from 8.3 to 4.0”.


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