Review American and Asian session 06.03.2008

Review American and Asian session 06.03.2008

The weakness of the U.S. labor market pressures dollar

On Wednesday at the session of the American dollar was again under pressure against a backdrop of weak economic data for the United States.

The main reason for the sharp fall of the dollar became ADP data on the jobs created in the private sector in February, which showed job cuts to 23000 against the forecast of economists, who had thought an increase of 10000.

In advance of the official labour market data in the United States, which will be presented on Friday, ADP data show further deterioration in the labour market. The reduction of jobs affects the unemployment rate, which in turn lowers consumption, which affects the growth of the economy. At the moment, everything points to the approaching recession in the United States.

Also not very reassuring have data on activity in the service sector, which is predominant in economic growth. An ISM index rose to 49.3 in February against 44.6 in January. Despite the increase in the index, its value is below 50.0, indicating a slowdown in the sector.

The increase in oil prices also provided on the dollar against a backdrop of the United States Department of Energy data on the reduction of oil and petroleum products. The price of light sweet oil brands rose to a new maximum mark of $ 104.80 per barrel.

As a result, the euro rate participated in the new maximum of 1.5300 against the dollar. Para pound / dollar moves toward 2.0000, while the franc and the yen traded threads against the backdrop of sales of these currencies in the cross-rates, which influenced the dynamics in the major pairs.

The pressure on the dollar continues, as data on the United States should be reminded of the distressing situation in the United States. The key to the dollar before the end of the week will be data on the labour market, where weakness in the dollar will continue to fall.

At the Asian session rates of the major currencies traded increased. At the time of writing the euro rate against the dollar negotiate with a mark of 1.5298. Pound against the dollar negotiate with the level of 1.9920. Para dollar / CIOC franc at around 1.0360. Para dollar / yen level from 103.80 CIOC.

Today, the main events will be the decisions of the European Central Bank and Bank of England on interest rates at 15:00 and 15:45 Moscow time, respectively. Economists forecast the ECB will leave rates unchanged at 4%. The Bank of England is also expected to leave rates unchanged.

At the European trading session of the average range for EURUSD pair is between levels 1.5260 - 1.5300.

Para euro against the dollar on American CIOC session with an increase against the backdrop of weak data on the United States.

Indicator purchases in the zone, the European pair session will be traded in the range of, or continue to rise.

At the European trading session of the average range for the pair GBPUSD between levels is 1.9900 - 1.9970.

Para pound against the American dollar at the session CIOC increased against the background of weak data on the United States.

Indicator purchases in the zone, the European pair session will be traded in the range of, or continue to rise.

At the European trading session of the average range for USDCHF pair is between levels 1.0335 - 1.0380.

Para dollar / franc on American session CIOC threads.

Indicator in the area of sales, the European pair session will be traded in the range may decline.

At the European trading session of the average range for USDJPY pair is between levels 103.60 - 104.15.

Para dollar / yen on American session CIOC threads.

Indicator in the neutral zone, the European pair session will be traded in the range may decline.