Hi forex traders
Today’s forex trading hour is again represents the out look of the Dollar,Euro, GBp areas as I generally do in my this series of fundamental news and its analysis. But my lovely forex colleagues in future I am in the planning to add other currencies fundamental issues in my forex trading hour.
=After The Rise In The Consumer Price Index at 1.6%,The Risk Appetite Gained Its Footings
=The British Pound Gained After Retail Sales Strength
=Gained in the Producers prices cause the fall of Euro today
US Dollar Fresh Fundamentals
Traders are now turning their attention to comments from Bernanke due at 15:00 GMT today because yesterday the news of consumer price index was the matter of disappointment for Dollar. Because we see Consumer prices in the world’s largest economy grew at an annualized rate of 1.6 percent in January after rising 1.5 percent the previous month, which was although in line with economists’ expectations. After this news the major observation was that the greenback lost ground against most of its major counterparts as risk appetite regained its footing.
In fact, growth in the prices caused due to higher prices of food and fuel. Meanwhile, housing prices rose by 0.1 percent in December.
Today due we may see some dovish statement by Fed chairman Mr Ben Bernanke later today because the businesses are reluctant to add payrolls due to uncertainty in the U.S.’s economic outlook. The payrolls numbers in term of unemployment are hovering around 8% and top of it It is also interesting to note that the release of trails last command of the Federal Reserve for 19 of the largest U.S. banks to test their level of capital on the possibility of another recession amid slack in the largest economy in the world.
British Pound Fresh Fundamentals
The important thing in forex trading hour to discuss the retail sales numbers which has been increased. Look UK retail sales jumped higher in January, according to statistics (ONS) climbing 1.9% from December, Because in the month of December frost and snow kept customers at home and retail sales fell by 1.4 %, the ONS said the sharp downward adjustments of the December issue is delayed because of weather data collection.
Stronger than expected numbers will certainly help to allay the fears of the British economy has shrunk by 0.5% in Q4 2010. Moreover, it appears that the introduction of higher value-added tax (VAT) is not pressed so much the expected demand for it.
BIG Question Mark??
Can we see these retail same number increasing in the same manner as the Government has taken the measure to reduce there budget by cutting the expenditure up to 330,000 UK pounds and parallel with it is is the increase in the inflation cost in Uk which hit 4% in January and will rise further according to the Bank of England Inflation Report earlier in the week, could sap demand for goods if retailers pass on too much of rising costs to the consumer.
Euro Zone Fresh Fundamentals
Today the Euros mostly data was not worthwhile. But the in morning session the Euro was down when the German producer’s price numbers were more then expected. But overall ECB trying his best to control the inflation and in future we may see some awesome effort by the ECB and Bank of Japan as well.