U.S. economy not show signs of resumption of the Federal Reserve may delay raising interest rates (1)

U.S. economy not show signs of recovery
The Philadelphia Fed announced yesterday in their manufacturing index. The Philadelphia Fed data released Thursday showed that the Federal Reserve to measure the status of area manufacturing activity in June manufacturing index fell to -17.1,5 2003 and April respectively -15.6 and -24.9. Before the market is expected to -11.0. The index for manufacturing activity in that negative contraction, but said that manufacturing activity is expanding.
The Philadelphia Fed said in the report, the June manufacturing prices paid index of 53.8 from May to 69.3, while manufacturing prices index was 31.6 from the previous month to 29.7. Data also showed that in June from the manufacturing new orders index fell to -3.7 last month's -12.4, manufacturing shipments index last month from 2.2 to -6.7. In addition, the June index for manufacturing employment in -6.9,5 for -1.0.
The data is for the first seven months fell. In addition, the U.S. May housing market also dropped to a 17 to the lowest level. Industrial production accidents has dropped.
Outside the Fed forecast interest rate increase will be delayed
According to the Chicago Mercantile Exchange, the Futures Exchange, the Fed forecast the outside world on the 25th of this month will be the inter-bank overnight call rate from the current 2 percent increase the probability of 0.25 percentage points to 10 percent, with the probability of a fall a week ago. Earlier, outside the Federal Reserve interest rate increase forecast the probability of 22%. At the same time, the outside world in August predicted the Fed will raise the cost of borrowing rate also declined.
Scotiabank foreign exchange capital for Steven - Bale said: "I think at this time for the Fed interest rate increase is a huge mistake, this will jeopardize the economy. In the second half of this year, we will face the sluggish U.S. economy The new round of the impact, we expect also will enter a new round of the weak. "
U.S. dollar weakness re -
U.S. manufacturing sector contracted by the impact, the Fed reduced the outside world in the 25th of this month after the end of a two-day meeting expectations of a rate hike. U.S. dollar against the yen this week a devaluation. As the outside world predicted the European Central Bank Jean-Claude Trichet later in a speech today that policy makers will likely be a rate hike next month, for the euro against the yen exchange rate was a sixth week of appreciation. Earlier, the appreciation of the euro against the yen exchange rate over the longest time of the year.
Japan's biggest brokerage Nomura's Nomura Trust and Banking foreign exchange manager Hideki Amikura said: "The dollar exchange rate will further decline in the future also. The U.S. economy remains sluggish, if carried out when the Federal Reserve interest rate increase will allow I was shocked . Trichet as the European Central Bank interest rate increase hard-line stance, the euro exchange rate has been very good support. "
In Tokyo, Japan 8:48, the U.S. dollar against the euro exchange rate for Australian 1.5497 U.S. dollars, and yesterday did not change too much, but compared with last week fell 0.8 percent. U.S. dollar against the yen the dollar fell to 108.00 yen, from starting on the 13th of this month has dropped by 0.2 percent. The euro against the yen exchange rate for Australian 167.42 yen this week has risen 0.7 percent. Amikura Forecast for Today, the dollar fell to Australian 1.5560 U.S. dollars, 1 dollar to 107.80 yen.
A possible new wave of dollar selling
In the U.S. Federal Reserve Chairman Ben Bernanke said on the 9th of this month the U.S. economy risks being weakened. To this end, the outside world more and more people think the Fed will be raising interest rates this year, inflation accelerated to resist. Bernanke's remarks also make the dollar against the euro exchange rate set a new high within a month, reaching Australian 1.5303 U.S. dollars.