Fundamental Headlines
• Kohn Sees Tamed Inflation Threat – Wall Street Journal
• U.K. Jobless Climb, but a Slower Pace – Wall Street Journal
• ECB challenged by rising euro – Financial Times
• Unemployment in U.K. Rises Least in Year as Jobless Claims Trail Forecasts – Bloomberg
• China's Exports Drop by Least in Nine Months as Global Economy Strengthens -Bloomberg
EURUSD – Euro-Zone Industrial Production Prices rose 0.9% in August, but fell shy of economists’ expectations of 1.2%, adding signs that the Euro-Zone is slowly recovering from the its deepest recession since World War II. In annual terms, the output fell 15.4% in August from 15.9% the month prior, marking it the slowest year-end decline in eight months. The data highlighted European output of capital goods rising 1.1% in August from July, while durable consumer goods such as washing machines increased to 5.3% from the previous month. The rise in durable goods provides further indication of positive consumer sentiment as individuals increase their spending appetite. The revision from last month which change from negative to positive allowed Industrial Production to stay afloat for a 4th consecutive month.To discuss this and other ideas visit the EUR/USD Forum.
GBPUSD- . The U.K. Unemployment Rate held flat at 5.0% for September with the Jobless Claims Change rising 20.8K amid economists’ expectations of 24.5K.The data highlight’s an improved outlook for the U.K. as fewer people signed on for jobless benefits. Overall, unemployment was 2.47 million for August from the 3-months through July. Employers are limiting job losses as speculation of a recovery persists in addition to raising the earnings of current employees. Average Earnings including bonuses declined to 1.6% in the quarter through August, but base earnings excluding bonuses grew 1.9% in the same period. Despite this, Policy makers are likely to continue current stimulus programs as consumers scale bank spending amid job uncertainty in coordination with the ambiguity in recent global events.To discuss this and other ideas visit the GBP/USD Forum.
