ECB: A Turning Point?
by Angelo Airaghi [Guest Analyst]
5/4/2009


The European Central Bank (ECB) is meeting this week for what might be one of the most important days of the year. Words by ECB officials will be carefully scrutinized, as a change in market sentiment might again support the Euro and penalize the U.S. dollar over the medium term.

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U.S.: swinging numbers for an unstable environment

The economic growth is evolving in the United States with some sectors showing signs of improvement (real estate), while others still succumbing to the current crisis (employment). The mixed data testifies an unstable economic picture. Factory orders, as an example, declined 0.9% (-0.6% expected) in March, while the University of Michigan consumer confidence index printed 65.1 in April from March 57.3. However, growth should improve in the last part of this year supported by the favorable credit environment, the large stimulus package and a better world economic prospective. In effect, China appears to be quickly moving out of recession. For the first time since June, and for the second straight month, the local¡¦s manufacturing PMI expanded. The awakening of the Asian¡¦s giant will increase the demand for raw materials and help the global economic growth as well. The magnitude of current recovery has yet to be fully discovered, but positive expectation is increasing in the United States.


Angelo Airaghi is a Commodity Trading Advisor, registered with the National Futures Association and the Commodity Futures Trading Commission. He has been an active professional since 1990 working for major international financial companies. In the past 10 years, Angelo Airaghi has been an analyst and commentator for national and international media.

Source : http://www.forexnews.com/AI/default.asp