[B]Fundamental Headlines[/B]
• [B]NZDUSD [/B]– New Zealand’s 2Q consumer confidence fell to 81.7 from 96.5-the lowest level since the 1991 recession. Record high interest rates and rising food and energy costs are squeezing consumers. The Westpac survey showed for only the second time in its history that the prevailing sentiment was that it was a bad time to buy household items. Domestic consumption is expected to continue to decline as 52% of respondents expect the economy to worsen over the year. The RBNZ may have to cut rates by year’s end in order to avoid a recession. For more news and resources, visit our New Zealand’s Currency Room.
• [B]USDJPY [/B]– Japan reported a ¥365.6 billion surplus in its adjusted merchandise trade balance, which significantly beat expectations of ¥30 billion. Exports rose 3.7% from a year earlier with shipments to Asia rising 8.1% with China gaining 12.3%. Although demand from the U.S. and Europe weakened, commodity rich markets like Russia saw their appetite for Japanese cars increase as they benefit from the recent commodity boom. Discuss the topic and your trade ideas in the USD/JPY Forum.
• [B]GBPUSD [/B]– The U.K. CBI distributive trades report printed below expectations of +6 at -9. Although, the report showed an improvement from May’s reading of -14, as retailers expect domestic consumption to continue to remain weak. The three month average for sales volume fell another 16% in the month leading retailers to reduce their orders from suppliers for the upcoming month. The slowing growth in the economy will make it difficult for the BoE to cut rates as it battles inflation above its 3% threshold. The Discuss the topic and your trade ideas in the GBP/USD Forum.
• [I]Fed [/I][I]Vacancies Pose Challenge For Bernanke /I[I] – [/I]WallStreet Journal
• [I]Barclay’s To Shore Up Finances With $8.86 Billion Share Issue /I[I] – W[/I]all StreetJournal
• [I]Spectre Of Inflation Over Global Economy /I[I] – [/I]Financial Times
• [I]Trichet [/I][I]Says Didn’t signal Rate Series, Never Pre-Commits[/I] (link) – Bloomberg
• [I] Severstal’s [/I][I]Mordashov Says He’d Consider Large U.S. Acquisition /I - Bloomberg
