Fundamental Headlines
• USDJPY – Japanese retail sales rose 0.3% in June from a year earlier, which was the eleventh month in a row of gains. The majority of the gain was due to rising food and fuel prices, which increased 3.6% and 3.0% respectively. Meanwhile, the jobless rate rose to 4.1%, the highest since 2006, which weighed on household spending which fell 1.8%. Discuss this and your trade ideas in the USD/JPY Forum.
• USDCHF – The UBS consume consumption gauge improved to 2.25 from a revised 1.95 in May. It was the first increase in four months and biggest gain since April 2007. A strong labor market and wage growth have fueled consumer spending. Domestic growth may offset slumping exports and keep the economy from contracting, allowing the SNB to keep interest rates in hold. For more news and resources, visit our Swiss Franc Currency Room.
• GBPUSD – The CBI retail trade survey fell sharply to -36 from -9 in June, which was the lowest in 25 years. 61% of respondents said that sales were lower in June and the outlook remains bleak with next month’s expected reading of -32. Also, mortgage approvals fell to 36,000 from 41,000 in May, which was the lowest level since at least 1999. The housing slump continues to deteriorate as credit markets remain sticky, which has begun to weigh on the broader economy. As the country approaches a recession the BoE hands remained tied as inflation has risen to 3.8%. For more news and resources, visit our GBP/USD Forum.
• Banks Act to Aid Mortgage (link) – Wall Street Journal
• Merrill Aims to Raise Billions More (link) – Wall Street Journal
• Doha Trade Talks Stall Over Farm Imports (link) – Financial Times
• Nomura Has Unexpected Loss on Provisions, Trading (link) – Bloomberg
• U.K Mortgage Approvals Decline to Lowest Since 1999 (link) – Bloomberg
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