Friday, January 21, 2011

Strong data on demand and the housing market supported the dollar

The dollar grew yesterday in response to the data exceeded expectations by initial applications for unemployment insurance and real estate market and the subsequent jump in the yield of Treasuries. In the week that ended Jan. 15, the number of initial applications fell by 37 thousand to 404 thousand, after rising by 30 thousand a week earlier. The number of applications currently approaching 2.5-year low that recorded before Christmas.

In addition to data on payrolls (payrolls), recent data suggest an improvement in the labor market in the U.S.. At least, reduces the number of initial applications for benefits indicate that fewer people lose their jobs. About the housing market was even more good news, which showed sales growth of secondary residences by 12,3% to 5.28 million in the seasonally adjusted estimate the annual rate of sales in December. This is a maximum of seven months. What's even more impressive that the surplus of unsold homes are melting rapidly, up to 8.1 months from a peak of 12.1 in July. The dollar also helped to jump in government bond yields by 10 points to 3.42% on a ten-year securities.

Inflation in the U.S. also goes up. Like almost everywhere in the world, inflation in the United States finally went up, reflecting an increase in procurement prices and strong consumer demand. Investigation FRB of Philadelphia in January, issued yesterday, showed the growth of the component prices to 54.3 from 47.9, its highest level since mid-2008. At the same time increases the component cost prices. Firms are more optimistic about its ability to survive higher prices in the future.

Translate this page

Search This Blog