Thursday, March 22, 2007

Forex News: 22.03.2007 Dollar continues to decline

“Dollar continues to decline”, Artem Enshin, NorthFinance financial analyst says. “Yesterday we passed by the maximums of the last year and saw two-year maximum. EUR/USD consolidated at 1.3400, indicating that the investors still bear negative attitude toward American dollar.

The interest rate increase or more radical announcement of FOMC could only stop this tendency, but FOMC went other way. The idea of the announcement was that further steps of the Committee would depend on macroeconomic data, in particular, on inflation and GDP change. As a result the unchanged rate and neutral position of FOMC aggravated dollar position.

All major currencies benefited from dollar decline, where each of them consolidated by, at least, 100 points. Australian dollar even broke through its own record and consolidated at its historical maximum, 0.8090.

The most interesting macroeconomic news of today is retail sales in Great Britain, which, according to estimates, will rise by 2 per cent, from -1.8 in January to 0.8 in February. Trade balance for the euro area is published today. In the preceding month the index was 2.5bln euro. The traditional Thursday indicator is jobless claims in the USA. The index is expected to rise by 322K, compared with 318K in the preceding week”.


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