The leading indicators will surprise every one and the dollar is set to rally on that
Sam Adelton
Oct. 15, 2006

The leading indicator due to come out on October 19 around 10AM will show surprising strength in US economy. It will rise close to 0.4% beating the consensus of 0.3%.

The new orders, jobless claims, money supply, average workweek, building permits, and stock prices all will points higher. Interestingly in spite of housing slump, the building permits will be higher. The bullish under tone in the real estate market will play its role. The biggest rising component will be the stock prices.

According to some estimates the leading indicators may even rise 0.5%. That will fuel a rally in US Dollar index to 88 levels from the current level of upper 86. The Euro, Swiss frank and British Pound will show maximum loss of value. The commodity and energy currencies like Australian Dollar and Canadian Dollar will have their own tune in the market. The Japanese Yen probably will go down some more but the amount will be less than other currencies.

The US Dollar may be poised for a very long term rally with getting at par with Euro. Gold will hold steady with Dollar and rise fast against Euro.

In the short run ( six months), US economy will show some surprising strengths and Fed will continuously comment on raising rates. That will be bullish for the Dollar. The long bond market will falter somewhat while Eurodollar will continue to build the base.

The manufacturing and service sectors will show some surprising strengths. Some analytic models are showing surprising strengths with very moderate inflation. The new highs in stock market show that.

The leading indicators will surprise every one and the dollar is set to rally on that
Sam Adelton
The new orders, jobless claims, money supply, average workweek, building permits, and stock prices all will points higher.
READ MORE>>

Housing Starts will show weakness like never seen before since February 2003 - a recession eminent?
Fred Day
While some economists are expecting a surprise from the builders on the positive side, the number most likely will show slump. Housing Starts will show weakness like never seen before since February 2003.
READ MORE>>

Prices paid by U.S. consumers will fall in September - is it less inflation or start of scary deflation?
Paula Zubeda
Prices paid by U.S. consumers will fall in September. The consumer price index gained 0.02% in August. Most likely it will fall o.4% in September. The lower energy prices especially gasoline in the pump stations will be a major factor.
READ MORE>>

Corporations finding it hard to raise prices to match increasing raw material and labor costs – what is the effect on stock market?
Peter Oberois
. The cost of input for output has risen steadily in the last four years in a very stealth way. The purchasing power of consumers at the same has plummeted steadily. The scenario is ugly at the best and outright scary at the worst.
READ MORE>>

The last bull leg of historic global bull market pulling Sensex to 13K - what will happen now?
Preeti Chauhan
Sense of better corporate earnings made Sensex zoom 198 points to approach 13K.
READ MORE>>

MORE ARTICLES >>