Fundamental Headlines
• AUDUSD – Australian business confidence held at the lowest point in seven years at -9, as the highest interest rates in 12 years weighed on consumers spending. Company profits are declining as consumers are faced with record energy and food prices. The RBA is facing more pressure to cut borrowing costs as expectations for economic growth were cut to 2% compare to 4,3% in2007. For more news and information visit Australian Dollar Currency Room.
• EURUSD – The French current account deficit widened to a record high -4.4 billion as a strong Euro led to decreased demand for exports. Meanwhile, French inflation remained unchanged at 3.6% as oil and commodity prices fell. If price pressures abate throughout Europe, it may give the ECB room to lower their benchmark interest rate. Discuss the topic and your trade ideas in the EUR/USD Forum.
• GBPUSD – Inflation in the U.K. rose to 4.4% from 3.8% on an annualized basis and more than double the central bank’s 2% target, supporting BoE Governor King’s contention that prices will remain above 4% for the foreseeable future. Expectations are that the country’s slowing growth will drag down prices and ultimately allow the BoE to cut rates as they try and prevent the economy from slipping into a recession. Discuss the topic and your trade ideas in the GBP/USD Forum.
• U.S. Retools Economy, Curbing Thirst for Oil (link) – Wall Street Journal
• Banks in Euro Zone Tighten Lending Again (link) – Wall Street Journal
• The Short View: US dollar and commodities (link) – Financial Times
• U.K. Inflation Reaches 4.4%, More Than Double Target (link) – Bloomberg
• Gold, Platinum Fall Lead Commodities Into Bear Market on Growth Risk (link) – Bloomberg
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