Forex Report with FMCI Update by Forex Metrics - Feb.26/2008
FMCI shot up by 110 pips to 1.2245 level with 9 out of 10 currencies up.
Today, FMCI rose substantially with a relatively positive economic data. Major currencies were volatile in upward direction.
Economic data released on Feb/25 was positive in a way for US and UK.
* US existing-home sales fell a less-than-expected by 0.4% on m/m to a 4.89 million annual rate in January. This catalist signifies the possibility of avoiding recession and gave boost to USD, although there was negative news, that inventories of homes available for sale increased 5.5% at the end of January to 4.19 million.
* UK house prices fell 0.2% m/m in February, pushing annual house price inflation to a 22-month low, showing a sign of economic slowdown. Bank of England’s Monetary Policy Committee member Kate Barker commented “Recession remains outside the main possibilities….We have got this combination of shocks coming from abroad and it’s difficult….We certainly expect a period of greater volatility this year,” Definitely inflation is under check and cut in interest rate would be a suitable move for boosting the economic growth.
Major currencies were overall trending upwards, but still range bound.
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