Major Market Mover: End of Hectic Week

An end of a hectic week; with the American sensing some rays after the dark clouds began to fade away, though still no solid proof subsist that the feds had managed to extinguish the fire from the worst housing slump and Credit Crunch faced after the Great Depression.

The ECB, BOE and the feds decided to hold rates steady as they all are struggling with higher inflationary pressures along with a slowing growth, and maintaining those levels are the most convenient decision at the time being. Yet the remarkable fact that took place in markets is the strength the US dollar gained against majors with out any exceptions; reaching a new high against the Euro 1.5194 levels, with the bulls now getting back into markets with a strong force that might crash all majors.

But before unfolding this week we have some fundamentals left; with the non-farm productivity and the wholesales inventories from the United States, as those two reading continues to provide us with efficiency of the workers in the Industrial sector.

Surge in commodity prices and raw material and the lower demand on the manufacturing sector urged employers to slice down their extra expenses in order to maintain a significant level of profits that would help the company to continue growing on the same pace.

Expectations varies between analysts but the median estimate falls at 2.5% falling from the previous 2.6%, the productivity might have been falling with the slow down deepens more in the US economy, as commodities and other variables are getting in the way of the manufacturing sector.

If the non-farm productivity dipped to more than expectations concerns will arouse again in the states, if the cut down in the employment just to cut down expenses did not contribute in increasing the productivity of individuals, this means that companies will carry on laying off more jobs just not to face any imbalances in their total income, plus it will be clearing out that consumer demand is still heading to the downside which would eventually indicate that US are still fighting the deep slow that halted upon on them.

Besides the non-farm productivity we've got the unit labor cots, with expectations that it would be falling down to 1.4% levels from 2.2% in the second quarter, if those costs really dropped to this points that wages are not creating any pressures on the rising inflationary pressures in the United States, as the US citizen will continue face low wages.

High volatility in the financial markets those days are taking all the attention, with markets participants watching to see if the US dollar got back to its strength against major once again, and whether confidence is being restored again in the long falling US dollar.

Crown Forex

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