Fundamental Headlines
• NZDUSD – New Zealand manufacturing and sales recorded its largest gain in the 15 years that the series has been measured. The Statistics office of New Zealand in a statement today reported that the gauge rose 8.3% for the fourth quarter. The majority of the increase was fueled by a 26% jump in meat and dairy, but the broader measurement still saw a 2.3% jump excluding those industries. As, the New Zealand economy continues to show growth despite the U.S. slowdown, the RBNZ may start to consider raising rates to battle rising inflation, which it hasn’t done since last July. For more news and resources please visit our New Zealand Currency Room.
• EURUSD –Eurozone CPI unexpectedly increased with the headline reading printing 3.3% and the core 1.8%, up from 3.2% and 1.7% respectively. Record oil prices and a 5.8% acceleration in food costs continue to increase inflation in the region. Additionally, labor costs rose to 2.6% from 2.5% the month prior. This supportive data to the ECB’s hawkish stanch, is now convincing economist a rate cut by the end of the year is a dwindling possibility. Discuss the topic and your trade ideas in the EUR/USD Forum.
• Japan’s Economy Quakes Anew As Yen Soars Against Dollar (link) – Wall Street Journal
• Carlyle Bank in Freefall As Its Banks Get Nervous (link)– Wall Street Journal
• Dollar Plunges to Record Low (link) – Financial Times
• Paulson Urges Banks To Raise More Capital (link) – Financial Times
• China Factory, Investment Climbs 24.3% (link) – Bloomberg
• European Inflation, Labor Cost Growth Accelerate (link) – Bloomberg
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