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Fundamental Headlines
• NZDUSD – New Zealand retail sales rose 1.0% in April from a 1.2% decline the month prior. It was the first increase in three months and was double expectations of 0.5%. The improvement is expected to be temporary as inflation and record high interest rates weigh on consumers. RBNZ Governor Bollard expects growth to slow to 1.2% from 3.1% in 2007. For more news and resources, visit our New Zealand Dollar Currency Room.
• USDJPY – The BoJ as expected left their benchmark rate unchanged at 0.50%, due to the effects of rising inflation and raw material costs on growth. Indeed, industrial production declined 0.2% in April. Additionally, household consumer confidence fell to 33.9 in May from 35.2 as the labor market softens. Discuss the topic and your trade ideas in the USD/JPY Forum.
• EURUSD – Euro-Zone employment rose 0.3% in the first quarter led by a 0.5% increase in Germany. Meanwhile, French business confidence fell to 97 from a revised 100 in April and German CPI accelerated 0.6%. Inflation concerns are expected to lead the ECB to raise rates in the near-term, but a softening economy has European leaders warning against the action. Discuss the topic and your trade ideas in the EUR/USD Forum.
• As Microsoft Walks Away, Yahoo Enters Google Ad Pact (link) – Wall Street Journal
• Foreclosures Rise 48% in May As U.S. Housing Woes Deepen (link) – Wall Street Journal
• Lehman Shakes Up Management (link) – Financial Times
• Lagarde, Mirow Signal Europe’s Support For Dollar Gains at G-8 (link) – Bloomberg
• Treasury Two Year Notes Head For Biggest Weekly Loss Since 1982 (link) – Bloomberg
