Fundamental Headlines
• USDCHF – The global slowdown is beginning to drag down the Swiss economy, the SVME purchasing manager index detailed Monday. The index declined to 54.1 from 54.9 in June, the lowest value since August 2005, and below the expected long-term average. While the reading above 50.0 signifies growth, record raw material costs and an appreciating franc have eroded sales of Swiss goods. For more news and resources, visit our Swiss Franc Currency Room.
• EURUSD – Stagflation pressures continue to mount in the Euro-Zone, as factory prices gained 8 percent in June. Economists had been anticipating a 7.9 percent increase. Amid high living costs, manufacturers passed additional costs onto consumers. Producer prices increased by the most in 18 years, bringing the ECB’s dilemma over how to balance growing inflation and downside growth into focus. The ECB council is expected to “do in the future what is appropriate to deliver price stability.” For more news and resources, visit our EUR/USD Forum.
• AUDUSD – Amid the RBA benchmark interest rate holding at a 12-year high, Australian house prices fell for the first time in three years as home buyers stayed out of the market. The index measuring the weighted average of prices fell 0.3 percent in the second quarter, down from the 0.4 percent gain in the first quarter. The falling house prices support RBA Govenor Glenn Steven’s view that the economy will slow enough to cool inflationary pressures. For more news and resources, visit our Australian Dollar Currency Room.
• Strong Productivity Defies Trend and Gives Fed Room to Maneuver (link) – Wall Street Journal
• Europe’s Economic Slump Widens (link) – Wall Street Journal
• HSBC Weathers Global Financial Storm (link) – Financial Times
• Citigroup Said to Close Remaining Tribeca Global Fund (link) – Bloomberg
• China Wins Financial Olympics as Losses Hit U.S. (link) – Bloomberg
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