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Fundamental Headlines[/B][/U]
• [B]USDJPY – [/B]Soaring oil prices and living costs spread discouragement among Japanese merchants, as the Economy Watchers index dropped to 29.5 in June from 32.1 in May. Amid weakened consumer purchasing power, the index reached its lowest level in six-years, the same level at which Japan reached during its 2001 recession. Although Japan continues to combat the global slowdown, inflationary pressures are beginning to mount. A Bank of Japan survey showed that 88.9 percent of people expect prices to climb within the next year. Discuss the topic and your trade ideas in the USD/JPY Forum.
• [B]AUDUSD – [/B]Australia’s NAB Business Confidence index dropped to its lowest level in seven years, as reduced domestic and foreign demand for raw materials diminished profits. The index dropped to minus 9 in June, from minus 4 in May, indicating slower growth is subduing inflation. Weaker sentiment reinforces speculation that the RBA is done raising interest rates this year. Australia’s borrowing rate of 7.25 percent has triggered a slowdown in spending since the rate hike, as intended. For more news and resources, visit our Australian Dollar Currency Room.
• [B]GBPUSD[/B] – Property values climbed 3.7 percent over the year, a DCLG house prices survey indicated. This was the smallest annual increase since March 2006. Home loans also fell 44 percent in May from the year previous. The housing market remains damaged in the wake of the U.S. credit crunch. Increased inflationary pressures in the past few months have particularly hurt consumers, forcing expenses to be concentrated on energy and food. The mounting conditions have decreased sentiment, and spending will be reduced for a prolonged period. Discuss the topic and your trade ideas in the GBP/USD Forum.
• [I] Deal May Expand Fed’s Reach /I – Wall Street Journal
• [I]ECB Rate Rise Focuses on Wages /I – Wall Street Journal
• [I]Fannie and Freddie Hit by Fresh Concerns /I – Financial Times
• [I]G-8 Says Oil, Food Prices Pose Risk to World Economy /I – Bloomberg
• [I]Persimmon Eliminates 1,100 Jobs; First-Half Home Sales Drop 34% /I – Bloomberg
