The United States dollar strengthened its positions in relation to main currencies throughout the last forex trading session. It has reached the point 104.80 against the Japanese Yen and 1.5349 in relation to Euro. Among the reason caused this growth we can outline such factors as the speech of the Thomas Hoenig the Kansas City Federal Reserve President and the growth of the US productivity that turned to be higher than expected. According to Hoenig comments the economy of the country will return it previous positions until the end of this year and the inflation problems show the necessity for the Federal Reserve to respond the problems properly.
Another factor contributed to the USD growth is the low data of the European and British economic reports. The Euro decreased to the point of 1.5367 due to the decline of retail sales volume and factory orders of Germany.
According to John Kyriakopoulos the head of currency strategy of NAB Capital Markets there will be no changes of the interest rates by the European Central Bank. Moreover he added that the Euro may possibly decrease below the 1.5350 level in case the ECB President will accept that the risks of further economy decline have increased.
As for the United Kingdom the industrial production level decreased there significantly and contributed to the decline of the British currency to the point of 1.9500 in relation to the USD throughout forex trading session. It is expected that the Bank of England will decrease interest rates by 25 bp because of the trouble at the UK housing sector however the rates cut is to be in June not today.
According to John Kyriakopoulos such factors as increased USD, decline in gold and metal prices contributed to the certain decrease of the Australian dollar to the point of 0.9375 in relation to the United States dollar.
The only way to recover is make the labor market strong again. The outlook number for the April new jobs report is 10,000.
As for the Australian interest rates they remained unchanged by the Central Bank of Australia on the last Tuesday.