Fundamental Headlines
• Fed's Lending Ebbs as Crisis Subsides – Wall Street Journal
• U.K. Economy Could Take Flu Hit – Wall Street Journal
• Investors seek QE signs– Financial Times
• Selling Switzerland Short Finds Favor as National Bank Breaks Franc Rally – Bloomberg
• Bernanke May Hold Rates Down by Showing He Can `Forcefully' Reverse Course – Bloomberg
EURUSD – German producer prices in June fell by 4.6% which was the fastest pace in 40 years led by declining energy costs. However, we may have seen the worst as oil prices peaked last July and the year-over year readings should start to rise. However, factory gate prices still fell 0.1% during June as we saw a pull back in commodity prices on concerns that a global recovery will prolonged. Discuss the topic and your trade ideas in the EUR/USD Forum.
GBPUSD – Rightmove LLC reported that U.K. home prices rose 0.6% in July to £227,864 after falling 0.4% in June. Meanwhile, at the BoE report on lending showed that mortgage approvals from the six largest lenders rose, but that consumers and business are still finding it difficult top get credit. Nevertheless, the stabilization of the housing market could be a key for an economic recovery and could help raise the outlook for Briton. The increasing optimism may spur domestic growth offsetting the weak demand for exports. Discuss the topic and your trade ideas in the GBP/USD Forum.
Al Bawaba
