By Yan Petters – The U.S. dollar entered a bullish trend yesterday for the first time in three months. This was due to speculation that the Federal Reserve will increase debt purchases. The market has reacted positively to the speculations, largely because they feel U.S. inflation will go up as a result. Economists agree that this is a necessary step by the Fed, and that it will have positive effects on the economy. This was enough the support the dollar yesterday.
However, this might have little effect on today’s trading, due to the large amount of significant economic releases from all over the world.
Here are today’s leading economic indicators:
• 12:30 GMT, U.S. Core Durable Goods – This report measures the total value of new purchase orders placed with manufacturers for durable goods, excluding transportation items, which tend to distort the underlying trend. If the end result will beat analyst’s expectations for a 0.4% rise, the dollar might rise further.
• 14:00 GMT, U.S. New Home Sales – This is one of the most significant housing sector indicators in the U.S. and thus tends to have a large impact on the market. Analysts have forecasted that 301,000 new homes were sold on September. Such a result will mark the best figures in 3 months, and is likely to support the dollar.
• 20:00 GMT, New Zealand Official Cash Rate- This is in fact New Zealand’s interest rates announcement for the following month. Current Expectations are that the Reserve Bank of New Zealand (RBNZ) will leave rates at 3.00%. However, if the RBNZ will surprise and decide to hike rates, the NZD might be boosted as a result.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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