The USD grew a bit but still it may lower further
The issue of the Federal Reserve last meeting minutes has caused certain growth of the US dollar in relation to main currencies throughout Forex trades. However the forecasts say that the current economic numbers and high commodity prices will contribute to the USD rate again. The United States currency was the reason of some decrease at the equity markets accompanied by the concerns of the traders about the growing inflation and slowing economic growth. This trend became obvious after the yesterday announcement by the Federal Reserve about the cut of its growth forecasts and intention to stop interest rate cut for a while. According to the minutes released we can suppose that the US interest rates finally reached its lowest point and any further decrease is possible only as a last resort after the crush at capital markets or further slowing of the economic growth data.
According to the Hans Redeker at BNP Paribas high commodity prices are likely to affect the USD further. The amount of the unemployment compensation has remained at the previous level of 370,000 however the economy of the country is still in bad situation as we can see from the house price index.
According to the experts forecasts the house prices may continue to decrease by 1.3%. With the supply exceeding the demand the bottom of the housing market will not be reached in the nearest future.
As for the Euro is not expected to change significantly today. Only the industrial orders will possibly decrease by 0.2 percent. At the same time the economic situation in the UK shows that the consumers are still suffering from the consequences of the credit crisis.
The sales level is expected to decrease by 0.5 percent instead of usual annually growth the sales experience. According to experts considering the economic data there is expected another decline in the official economic numbers.
