Tuesday, March 27, 2007

Forex News: 27.03.2007 Possible decrease of interest rates in the USA

“Last week came to an end with good data of existing home sales in the USA, which greatly supported dollar and initiated its rise. In the light of this optimistic data the analysts also expected positive news on new home sales. However, the index was below expectations and achieved its lowest level for seven years, while the index of the preceding month was also revised to worse”, Georgiy Fedotov, NorthFinance financial analyst says.

Last week results persuaded the analysts that US monetary politics would not change and the interest rate would either stay unchanged or grow. But yesterday data indicates that there is a possibility of rate decrease, which is connected with the increase of mortgages by 9% in February and a record number of unpaid credits and bankruptcy of mortgage agencies.

After yesterday release dollar abruptly fell, while euro and pound sterling have been traded around their last maximums.

Today eur/usd is traded in the corridor of 1.3200-1.3400. Coming out of the corridor will indicate further developments”.


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