FED is more optimistic about the U.S. economy

Account of the yen at its strongest against the euro for the reduction of prices last month decreased to U.S. dollars after the world after the stock exchanges has increased as a result of better corporate earnings than estimated. This development, and good macro-economic data led investors to again seek risky assets. In the end this report out of Intel, which pleasantly surprised market participants.

Yen gave a 2.1 percent to 133.40 against the euro and dollar against poevtinya by 0.8 percent to 94.25. Greens and to cheapen money to 1.4135. Support the dollar failed to prove, and the words of Finance Minister of the United States Timothy Gaytnar. He said that the administration of Barrak Obama relies on a strong dollar and the green of money expected to remain the dominant world currency.

U.S. industrial production falls by 0.4 percent in June versus a 1.2 percent decrease in May. Analysts expected a stronger reduction of 0.6%. The index of consumer prices last month reported a 0.7 percent increase on a monthly basis and decreased by 1.4 percent annually.

Euro prices increased by 0.2 percent on a monthly basis and annually decreased by 0.1%. Continued optimism for the shorthand of the last meeting of the Federal Reserve. FED raised its forecast for economic growth, as current forecasts are for contraction of the economy with 1-1,5% this year compared to previous estimates 1,3-2%.

For 2010 the central bank foresees growth of 2.1 to 3.3 percent over the previous forecast of 2 to 3 percent. However FED level of unemployment expected to continue to grow and to reach 10.1 percent, while lowering it to levels before the crisis will need 5 to 6 years.

Today will be published data on initial claims for unemployment benefits in the U.S. washing week. After they reported in the preceding its lowest level since January of 565 thousand, now relies on new investors to decrease 547 thousand. I will also get information on capital flows to the U.S.. Estimates are net long term capital flows for the month of May to take into account rising to 16.7 billion dollars to 11.2 billion dollars in the previous month.

Gold account at its strong appreciation for the past two months after the dollar appreciation and increasing demand for oil increased the precious metal as an alternative investment to protect against inflation. Futures with the period of August delivery added 16.60 dollars, or 1.8 percent to 939.40 dollars for troy ounce. These purchases led to some analysts expect to rise to the level of 1000 dollars in the near future. The price for immediate delivery rose by 14.10 dollars or 1.5 percent to 939.80 dollars for troy ounce.

Oil reported the strongest increase for its last three weeks after a government report into account more than the estimated contraction in U.S. oil stocks. Stocks decreased by 2.81 million barrels per to 344.5 million barrels, while market participants pledge to decrease by only 2.1 million barrels per.

Futures delivery period by August poskapnaha by 2.02 dollars or 3.4 percent to 61.54 dollars per barrel. Compared to some reached record year of 147.29 dollars per barrel, prices decreased by 58%.

Variety Brent traded in London to get up 2.23 dollars or 3.7 percent to 63.09 dollars per barrel. According to the International Energy Agency demand for oil will increase by 1.4 million barrels per or 1.7% in 2010 to 85.2 million barrels per day.