Renewed risk appetite caused the growth of the United States dollar against such currencies as Japanese Yen and Euro. The Dow Jones Industrial Average index added 600 points throughout the week and made market members consider the real possibility of reaching 13,000 point. Fortunately no company has followed the General Electric fate and vice versa some growing trends were reported by several companies like Google and etc. Such situation caused the dollar to grow and we suppose it will contribute to its further growth. As for new economic data to be issued soon we expect only such indices as housing and durable goods data.
Moreover we should also mention the fact that the number of mortgage applications has increased therefore we can suppose some growth in the area of existing and new homes. As we have already said the USD will likely to continue its growth however the general trend of the American currency is more decrease rather then increase. High prices ($117 a barrel of oil and $1000 a ton of rice) also make nothing good for consumers. And the situation at the labor market still worsens as the number of fired staff continues to grow. For instance, Citigroup reported about the dismissal of 9000 persons following the 4000 job cuts by Merrill Lynch. Moreover there are more possible job cuts by such companies as JPMorgan – Bear Sterns and Delta – Northwest. So, the situation didn’t become better as we can see. And in case it will remain the same this will be real trouble for the economy of the United States.