US Dollar Fell Victim To Statistics - 27.5.2011

Dollar literally collapsed after the U.S. statistics on Thursday. The report on the labor market and GDP growth rates was highly disappointing. Initial claims last week fell by 10 thousand to $ 424 thousand, which was much worse than 400 thousand expected. Although the 4-week average, which is less volatile indicator, fell to 438.5 thousand from the previous 440.2 thousand, it is still too high to try and revive the economy. US 1st quarter GDP showed that the economy grew by only 1.8% against +3.1% in the previous quarter. Thus, after the GDP revision was left at the level of assessment last month, although under the median estimate, it was expected that he would be elevated to the level of +2.2%. The main reason for this disappointment was the revision to the bottom component of consumer spending. The combination of a weak labor market and low growth in the first quarter only to convince the Fed that he chose the right direction of monetary policy. Recent reports suggest that CB is no reason to actively move to tighten. Today's reports can only increase the number of arguments to a neutral mode: consumer income and expenditure data from the housing market and consumer sentiment from the University of Michigan, is also likely to cause frustration, given the decline in the average wage and the slowdown in retail sales.

Today financial market participants await publication of data on private income and expenses in the U.S., as well as the final index of consumer sentiments, calculated by the University of Michigan. It is very likely that these figures will be worse than expected. This is even more can strike on American currency. As for the Euro, the main factor that pressures on the European single currency remains the same - it's worsening debt crisis in Europe. On Thursday, the Euro fell after the announcement Eurogroup chairman Juncker that Greece could be denied the next tranche of financial assistance, if an audit of its fiscal accounts show that the country can not guarantee funding in the next 12 months. However, then the single European currency regained its losses since the solid solutions that Greece did not receive the funds was not, and the negative macroeconomic statistics The U.S. also provided support for the Euro.