Fundamental Headlines
• AUDUSD – Australian Westpac leading index slowed for a third month to 3.3% from 4.1% the month prior. The index which tracks eight gauges of economic activity is validating concerns that he economy will slow in 2008. The RBA which raised the benchmark rate in March to curb inflation, may have to start considering future rate reductions. For more news and resources, visit our Australian Dollar Currency Room.
• GBPUSD – U.K. unemployment remained stable in February at 5.2%. However, the claimant count fell less than expected at 1.2K, with the prior month’s reduction of 2.8K revised to a gain of 600, signaling the U.K. labor market is softening. Additionally, wages increased adding to the current inflation concerns of the BoE. Discuss the topic and your trade ideas in the GBP/USD Forum.
• EURUSD – European inflation rose more than expected to 3.6%, nearly a 16 year high. Energy prices increased and food costs reach record levels, with dairy products and breads and cereals seeing major jumps of 14.3% and 9.0% respectively. The ECB has maintained their concerns over rising costs, which was reinforced when board member Juergen Stark hinted that not only was a rate cut not in the near-term future but that the current benchmark rate may not be high enough to achieve price stability in the region. Discuss the topic and your trade ideas in the EUR/USD Forum.
• Merrill Upped Ante as Boom In Mortgage Bonds Fizzled (link) – Wall Street Journal
• Bankers Cast Doubt On Key Rate Amid Crisis (link) – Wall Street Journal
• Biggest Grain Exporters Halt Foreign Sales (link) – Financial Times
• European Inflation Accelerates More Than Forecasted (link) – Bloomberg
• China’s GDP Grows 10.6%; Bank Reserve Ratio Rises (link) – Bloomberg
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