[B]Fundamental Headlines[/B]
[I]• Triple-A Ratings Not at Risk – Wall Street Journal
• Short-Term Focus Hurts Economy – Wall Street Journal
• US citizens in rush for offshore tax advice – Financial Times
• China Growing 9.5% Evident With New Vehicles Exceeding U.S. for First Time – Bloomberg
• U.S. Steel, Union Push Obama to Choose Workers Over China in Import Fight -Bloomberg[/I]
[B]GBPUSD[/B]– The U.K. visible trade balance deficit was relatively unchanged as it shrank from 6.51 billion to 6.48 billion as both exports and imports both rose. Demand from abroad increased 5% adding to signs that the global economy is improving. More importantly, the 3.5% increase in imports is a sign that domestic demand is firming. Consumers continue to battle job losses, depressed home values and tight credit markets and any sign of consumption is a positive for the long-term potential of a economic recovery. The BoE is expected to keep rates on hold at tomorrow’s policy meeting but may end their quantitative easing efforts. Discuss the topic and your trade ideas in the GBP/USD Forum.
[B]
EURUSD[/B] – The final reading for August German consumer prices was unchanged from the initial reading of 0.0% on a yearly basis. Prices ex-energy rose 1.0% signaling that the sharp fall in oil prices is continuing to provide deflationary pressure. A 0.4% decline in food prices during the month was offset by a 0.5% increase in goods that led to a net gain of 0.2% during August. Yet, despite the monthly rise in prices, inflation is expected to remain subdued for Europe’s largest economy which will allow the ECB to maintain interest rates at a record low of 1.00%. Discuss the topic and your trade ideas in the EUR/USD Forum.