FX.co ★ Fundamental Analysis, March 03, 2011

Europe's stock exchanges, which completed the third monthly rise in a row yesterday, have closed on declines on the background of increasing concerns of a spreading of the unrest in the Middle East to additional countries, as well as the oil's renewed ascent beyond the level of 100 United States dollars for one barrel. By the daily close, the London and Paris stock exchanges have declined by 1%, while Frankfurt dropped merely 0.9%.

The job market is improving all over the United States due to a rise in retail sales and a steady growth in production, according to the 'beige book', the Federal Reserve's periodic report on the state of the American economy published yesterday. The report further stated that the job market has continued to improve at a moderate pace, with all districts reporting a degree of improvement.

The Chairman of the Federal Reserve, Ben Bernanke, said yesterday in his testimony in front of the Senate Banking committee that that the bank is ready to react If needed, should signs show that inflation is likely to harm the United States' economic growth. Further, Bernanke stressed once more that the Federal Reserve will be ready to act, should the rise in commodities prices influence the United States economy negatively.

In the American macroeconomic sphere, employment in the U.S. Private sector grew by 217 thousand jobs in February, according to the monthly employment report published by ADP. Tomorrow the Federal Reserve's monthly, official employment report will be published, including also data on publish-sector workers and the United States' level of employment. Economists predict that the rate of unemployment will remain at 9.1%.