Forex: Crestfallen GDP Rate Dishearten The Market Sentiments

Friday, May 28, 2010

Yesterday the rise is seen in the Asian market by the Strong impact of Japan and New Zealand currency. Although the market seems to be in slow pace in the opening Forex online session but it surged as the time goes on and reach to high in the late Forex session. The US equities leads the market drops down in the morning but a sudden rebound is shown in the market as the time passes. There is also a good news from the exports side as they grew to 40 percent high in the fifth consecutive month due to the high selling of cars and high-tech goods. Where as the exports fell by 2.2 percent in New Zealand in the month of April and 4.06 percent in the month of March. While the China shows an impressive increase of 44 percent in exports.

Asian stocks trades seems to be higher than Nikkei and reaches up to 1.23 percent high but still below the 10000 level in the market. There was a further recovery seen in the Crude Oil where as the gold seems to be still holding the position above 1210. The EURO becomes the lower currency of this week but it still maintains it level above 1.2143 versus Dollar as seen in the overnight decline. The US equities seems to be revised above the 3.5 percent as expected annualized growth in the market where as the price index expected to rise up at 0.9 percent and core PCE expected to rose 0.6 percent respectively. There was a overnight recovery noticed in the USD currency due to the EURO weakness. But the Dollar index is still seems to be in low below the high of 87.46.

On Thursday Forex session the stocks gets the rise in the market due to which the US Dollar and Japanese Yen selling will seems to be low in the market. Because of this in the late Forex session both the currency fall down against the stocks. Th main cause of Yen falling is the expanded investors carry trades in the market. Since we have noticed that the US economy revised to 3.0 percent in the first quarter of 2010 year while the exports in Japan seems to be rose strongly in the Q1 session. Despite the weakness in the US retails trends there was still a rise seen in the Sterling currency. As the crude oil gets the price rise of 4 percent and commodity prices reached high there was a sudden rise seen in the Australian and Canadian Dollars. The EURO got advanced after the China's administration of Forex which eventually manages the $ 2.4 trillion of currency foreign exchange mentioned that- China's exchange reserves is always invested by the Europe the major investor market of China.

As we have seen that the US GDP growth rate received a third consecutive quarterly expansion of 3.0 percent after going through the lead rate of 5.6 percent in the fourth quarter of the past year 2009. The positive consolidations of the GDP growth rate was business equipments, new inventories along with personal consumption where as the weakest point was the commercial construction, net export rate and non other than government spending. These all factors affects the growth rate of US GDP in the first quarter of the current year 2010. The price index of GDP receives 1.0 percent hike in Q1 as compared to the past year q4 GDP price index which was only 0.5 percent that's why the market expected a price index rate of 0.9 percent in the first quarter.

US jobless claims was seems to be less than anticipated after the MAY 22 which was 14000-460,000 as compared from the past week job-less claims that got a hike of 474,000. Where as there was a hike seen in the consumer price index in the 3 increase in the four consecutive month and leads to 0.1 percent. Th UK retail sales seems to be in negative in the graph since March 2009 and now fall to 18 percent down in the month of May where as it was at 13 percent down in the month of April. While employment level shows a increase in Switzerland up to the modest growth rate of 0.1 percent.

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