Fundamental Headlines
• GBPUSD – UK house prices, as measure by Rightmove, plummeted 3.2 percent during December. The reading was the worst since record keeping began in 2002, as higher mortgage rates and tighter lending standards constrict the housing market. The data has weighed on the British pound, which trades dangerously close to trendline support.
• USDCHF – Swiss industrial production figures for Q3 proved to be better than expected against forecasts for a 2.2 percent drop and upward revisions to last quarter's index. Furthermore, the annual rate of IP growth jumped 10.7 percent - the sharpest gain since Q1 2000 - highlighting how export growth to the Euro-zone has helped support expansion in the Swiss economy.
• EURUSD – December flash estimates for Euro-zone PMI reflect broad slowing throughout the economy. Indeed, manufacturing PMI slipped to 52.5 from 52.8, while services PMI eased to 53.2 from 54.1. Meanwhile, the composite index also took a hit, falling to a two year low of 53.3 from 54.1. Overall, it appears that growth in the Euro-zone has already peaked, as more restrictive monetary policy and instability in the financial markets has a cooling effect.
• Why the Dollar Has Rebounded a Bit (link) – The Wall Street Journal
• Japan's Service Demand Rebounds as Software Installed (link) – Bloomberg
• Stagflation May Return as Price Pressures Meet Credit Squeeze (link) – Bloomberg
• World Food Price Rises Set to Hit Consumers (link) – Financial Times
• Europe to Bear Brunt of Downturn (link) – Financial Times
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