ECB Rate Hike Chances Increase On Inflation, As Fed's Declines

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• [B]USDNZD – [/B]New Zealand visitor arrivals rebounded 9.4% in April from -11.8% the month prior, as immigration outpaced departures for the first time since December. After declines in immigration for 16 of the past 18 months, the sharp increase could lead to a rise in consumer spending and demand for housing. For more news and resources, visit our New Zealand Currency Room.
• [B]USDCHF[/B] – Swiss producer & import prices rose 3.9% year-over-year from 3.6% in April. The price increase refutes the SNB’s contention that inflation is transitory. Soaring energy and raw material costs continue to squeeze corporate margins and may spell increasing consumer prices. Inflation is already growing at the fastest pace in 15 years in the country. For more news and resources, visit our Swiss Franc Currency Room.
• [B]EURUSD[/B] – German producer prices rose 6.0% in May from 5.2% the month prior on an annualized basis. Prices accelerated at the fastest pace in almost two years as confirming the ECB’s fears that inflation pressure will continue to increase. Since, President Trichet signaled that a rate hike may be forthcoming, expectations are the central bank may increase rates twice by the end of the year. Discuss the topic and your trade idea in theEUR/USD Forum.

• [I]Regional Shares Snap Winning Run On Credit Concerns and Oil’s Rise /I[I] – [/I]WallStreet Journal
• [I]Port Labor Talks Spur Optimism /I – Wall Street Journal
• [I]China Increases Energy Prices /I – [/I]Financial Times
• [I]Treasuries Gain As Traders Scale Bets On Fed Rate Increase /I – Bloomberg
• [I] Barclay’s To Get $927 Million From Mitsui, Person Says /I –[/I] Bloomberg