Euro Falls On Declining Factory Orders, BoE Leaves Rate Unchanged

[DailyFx]

Fundamental Headlines

• AUDUSD – Australia’s trade deficit shrank to -A$957 million from a revised –A$2.5 billion, which was the smallest gap in 14 months. A record high in exports led by a jump in coal shipments led to the deficit shrinking more than the -A$1.7 billion economist were expecting. Despite the economy continuing to expand and rising inflation, the RBA left rates unchanged as downside risk going forward are increasing. For more news and resources, visit our Australian Dollar Currency Room.
• GBPUSD – The BoE left their benchmark interest rate unchanged as expected as inflation hovers at the 3% threshold. However, the housing sector continues to deteriorate as prices fell the most in 15 years, which may require the central bank to cut rates sooner than expected. Discuss the topic and your trade ideas in the GBP/USD Forum.
• EURUSD – German factory orders unexpectedly fell 1.8% in April, which was the highest in ten months. It was the first time since 1992 that orders dropped five months in a row. A strong Euro led to a 3.8% decline in foreign orders as evidence continues to mount that the economy is slowing. Yet, expectations are that the ECB will keep rates unchanged until February next year. Discuss the topic and your trade ideas in the EUR/USD Forum.

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• U.K. House Prices Decline Most In 15 Years, HBOS Says (link) – Bloomberg
• King May Be More Irritant Than Ally For Brown At BoE (link) – Bloomberg