Fundamental Headlines
• USDCHF – Swiss adjusted retail sales fell 9.4% in April following a 9.7% gain the month prior. A slowing economy and rising inflation led to the first decline in almost two years. A closer look at the breakdown shows that there were across the board declines with clothing leading the way with a 24.7% drop. Economists had predicted a 4.1% increase, but as rising food and energy prices sap consumer’s purchasing power, domestic demand may continue to falter. For more news and resources, visit our Swiss Franc Currency Room.
• USDJPY – Tokyo condominium sales fell 17.7% in May as demand remains low as home prices outpace wages. The average price per unit gained for the 18th month increasing 0.4%. The slowing economy will continue to weigh on the market eventually leading to prices declining. Discuss the topic and your trade ideas in the USD/JPY Forum.
• EURUSD – European inflation rose to 3.7% in May from 3.3% the month prior on an annualized basis, which was the highest level since June 1992. Energy prices rose 13.7% from a year ago as oil prices continued its record setting pace. The core reading also increased to 1.7% from 1.6% as transportation costs rose 5.9%. The ECB is expected to raise rates at its next policy meeting, after President Trichet expressed concerns over the secondary effects of inflation. Discuss the topic and your trade ideas in the EUR/USD Forum.
• Bear Stearns Hedge Fund Managers May Face Indictments (link) – Wall Street Journal
• EU Official Plans Effort To Regulate Bond Raters (link) – Wall Street Journal
• G8 Sees Rising Inflation Threat (link) – Financial Times
• Barclay’s Gains Most In 16 Years, May Sell Stock To Lift Capital (link) – Bloomberg
• Corn Jumps To Record As Floods In Midwest Threaten U.S. Crops. (link) – Bloomberg
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