Deep recession feared in U.S. Feb. 27/08


Forexmentor.com Forex Trading Price Action

How deep is deep? Fears are growing about a deep recession in the U.S. Early February, business sentiment was still swooning. And, according to the experts, U.S. house prices will slide further – perhaps by as much as 20%. This certainly jeopardizes people en masse who took out blow-prime mortgages in 2006, and are already ending up in a negative-equity position.

The Philadelphia Federal Reserve’s Index of manufacturing activity in the U.S. Northeast was already dismal in January, coming in at -20.9, but dropped even further to -24.0 in February. This is an indication of manufacturing companies’ plans for general activity, new orders, shipments, employment and hours worked.

It is an early indicator of the health of the U.S. economy, and has been pretty accurate in predicting national manufacturing and future trends in actual output. Your forex strategies should always take into account news that is relevant to the currency pair(s) you are trading.

This commentary brought to you by Peter R. Bain at: www.forexmentor.com

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