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Posted by fxrecommends@gmail.com on February 26, 2008, 3:27 pm
"In my view, the adverse dynamics of the financial markets and the
economy have presented the greater threat to economic welfare in the
United States," These what Kohn Fed's Vice president said to add to
the greenback woes. The single currency get boosted from today's
upbeat IFO data underpinned versus the US dollar by a continued series
of US consuming weakness as the US Consumer confidence came
magnificently low following the US UN Michigan advanced reading of Jan
to ensured Khon view and to settle the dovish sentiment in the
currency market towards the greenback and the the recessions worries.
The Fed's main attention is paid to the growth not inflation inspite
of recent considerable high inflation rates as Dec CPI came at .4%
higher than the market expectations of .3% also the yearly figure came
4.3% just above the market expectations of 4.2% and the core was also
just above the market forecast of .3% at .4% monthly. The US inflation
rates have reached its the fastest pace in over two years last
November too and last week release of Jan came also just .1% above the
market expectations of just .3% m/m and today's PPI was also higher
than expected the core rate was .4% and the broad figure was1% showing
that the inflation is actually building up and it is serious and the
energy prices are really a challenge at this part of the economy
cycle.. The market bought the gold again on this pushing it to 950$
and the single currency just shy now of penetrating 1.50$ and it is
expected to do as Ben Bernenke's speech ahead and this Fed's dovish
sentiment can persist.
Best wishes
FX Consultant
Walid Salah El Din
Mob: +20 12 465 9143
E-Mail: mail@fx-recommends.com
http://www.fx-recommends.com
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