Fundamental Headlines
• USDJPY – Japan’s economy contracted 2.4% in the second quarter on an annualized basis as exports fell for the first time in three years. Growth fell 0.6% from the first quarter which has raised fears that the a more pronounce global slowdown is imminent. The country is on the verge of a recession for the first time in six years. For more news and information visit Australian Dollar Currency Room.
• EURUSD – European industrial production was flat in June after falling 1.8% the month prior. A strong Euro and slowing global growth have seen the demand for exports fall. The slowing growth in the region has ended the ECB’s tightening policy, and increased the chances that a rate cut may be forthcoming in early 2009. Discuss the topic and your trade ideas in the EUR/USD Forum.
• GBPUSD – U.K. Unemployment rose 20,100 the most in 16 years, pushing the claimant count rate up to 2.7% from 2.6% . Meanwhile, in the BoE’s quarterly inflation report Governor King stated that the “balance of risk are to the downside” as the economy is expected to experience a prolonged contraction. The central bank leader also left the door open for a future rate cut as he expects inflation to fall below the MPC’s 2% target in two years. Discuss the topic and your trade ideas in the GBP/USD Forum.
• BOE Expects Inflation To Hit Target By 2010 (link) – Wall Street Journal
• Euro – Zone Industrial Output Shows Weakness (link) – Wall Street Journal
• Japanese Contraction Fuels Recession Fears (link) – Financial Times
• Trichet May Resist Rate Cut as Inflation Spiral Looms (link) – Bloomberg
• U.K. Pound Falls to 21-Month Low as BOE Cuts Growth Forecast (link) – Bloomberg
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