In the early hours earlier had been a day that is active in the financial markets with the EUR/USD moves in and out of negative territory. At the beginning of trading session New York, the dollar traded higher against most major currencies but at the end of the session, the greenback eventually gave up most of the profit rise was caused by the company.
The restoration of its visible on all major currency pairs with the exception of USD/CHF, and USD/JPY remains unchanged for almost all day. UPS and downs of prices on the forex market shows that traders are still very worried about the problem in Greece.
The situation in Europe continued to make investors anxious but at the same time, the prospects for the US economy is not too bright, that explains why investors aren’t rushing to move into u.s. dollars.
Secretary of the Treasury Geithner shows, the u.s. economy is in a very difficult position and need a few more years before the restoration of full disektor housing.
The unemployment rate will also be down too slow for the assessment of most people which is another way to say that the recovery might be sluggish speed continues for some time.
The President of the Fed’s Kocherlakota, which is the owner of the voice on the FOMC seems to agree. He reduced his estimate for growth in the us for about 3 percent from 3-3.5 percent and he predicted the unemployment rate remained close to 8.5 percent, up from previous estimates.
However, despite the revision down to growth, he still believes that the central bank to raise interest rates until the end of the year because 50bp inflation core. This view was not shared by other Fed officials or market that expect an increase in interest rates by the Federal Reserve to do in the first quarter of 2011.
Part of the reason is because u.s. economic data continues to be vulnerable to pressure, describe how weak recovery AS fact.
Orders for durable goods down 3.6 percent in April, the worst in six months. Excluding transportation orders, demand for the goods in the last 3 years down 1.5 percent. Durable goods orders increased significantly in the month of March and the latest data reflected a decrease in kembalai.
Supply chain disruptions from Japan also contributed to the decline in demand, it is the speed of slow recovery of the US that has made consumers and businesses are reluctant to pull out of the budget.
The US dollar barely reacted to the durable goods report shows that investors have been immune to the weaker U.S. data. Report of the second GDP Q1 today will be released and growth is expected to be revised upward 1.8-2.2 percent due to stronger consumer spending. Unfortunately even with the upward revision, growth in the first quarter is expected to slow down from growth of 3.1 per cent experienced in the fourth quarter of last year.
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