The Bank of England held the benchmark interest rate at the record low of 0.50% and said that it will need another 2-month to complete its asset-purchasing program. Canada lost another 61.3K jobs in March, which crossed the wires slightly weaker than expected, while the annual rate of unemployment pushed to an eight-year high of 8.0%?
[B]Fundamental Headlines[/B]
[I]• Morgan Stanley to Post a Loss[/I] – Wall Street Journal
[I]• ING to Sell $10.6 Billion in Assets [/I]– Wall Street Journal
[I]• Downbeat outlook prevails inside Fed[/I] – Financial Times
[I]• Nowotny Says ECB Rate Cut Open for Debate, Buying Corporate Bonds Sensible [/I] – Bloomberg
[I]• Sumitomo Mitsui to Raise $8 Billion Capital After First Loss in Four Years[/I] – Bloomberg
[B]USDCAD[/B] – Canada lost another 61.3K jobs in March, which crossed the wires slightly weaker than expected, while the annual rate of unemployment pushed to an eight-year high of 8.0% from 7.7% in the previous month, and the data foreshadows a dour outlook for private spending as households face a weakening labor market. The breakdown of the report showed that full-time positions fell 79.5K during the month, while part-time jobs increased 18.2K after rising 28.3K in February. Discuss the topic and your trade ideas in the USD/CAD Forum.
[B]GBPUSD[/B] – The Bank of England held the benchmark interest rate at the record low of 0.50% and said that it will need another 2-month to complete its asset-purchasing program. The lack of commentary following the rate decision failed to trigger price action in the currency markets however, the BoE Minutes due out on April 22 could spur volatility in the British pound as the central bank maintains a dour outlook for growth and inflation. Meanwhile, the U.K. producer price index increased 0.1% in March, while the annualized rate slipped to 2.0% from a revised reading of 3.0% in February, which is the lowest level of price growth in 20 months, and at the same time, the core rate fell to 3.3% from 3.7% in the previous month as falling oil prices countered the rise in food and beverages. Furthermore, input price rose 0.1% during the month, while the annual rate fell 0.4% from the previous year, and the data continues to reinforce a weakening outlook for inflation as price pressures deteriorate at a rapid pace. Furthermore, the visible trade deficit narrowed more than expected to GBP 7.32B as the depreciation in the British pound spurred demands for exports while the January reading was revised higher to 7.82B from 7.74B. As price growth falters, the Bank of England may take further steps to shore up the economy as they maintain a 2% target for inflation over the medium-term, and as the central bank pledges to stem the downside risks for growth and inflation, further action may be required as the economy faces its worst economic downturn in over half a century. Discuss the topic and your trade ideas in the GBP/USD Forum.
[B]EURUSD[/B] – Factory outputs in German declined for the sixth consecutive month in February as industrial production slipped another 2.9% following the 6.1% drop in the previous month, which lowered the annualize rate to -20.6% from a revised reading of -19.3% in previous month. In addition, price growth in German dropped to the lowest level in almost ten years in March as the headline reading plunged to 0.5% from 1.0% in the previous month. Meanwhile, the ECB’s monthly report said that there was a broad easing in price pressures with headline inflation likely to turn negative temporarily later in the year, while President Trichet reinforced his reluctance to overshoot the interest rate, stating that he doesn’t expect the deposit rate to be cut again, but went onto say that the ECB will continue to monitor the long-term outlook for inflation. Discuss the topic and your trade ideas in the EUR/USD Forum.
[B]CHFUSD[/B] – Unemployment in Switzerland rose to the highest in at least 5 years in February as the seasonally adjusted jobless rate increased to 3.3% from 3.1% in previous month after firms throughout the region continued to slash their labor force in an effort to reduce costs. Fading demands from the home and abroad paired with financial uncertainties have certainly dragged on the Swiss economy, and the labor market is likely to deteriorate further throughout the year, which foreshadows a dour outlook for household spending. As a result, the weakening outlook for growth and inflation could lead the SNB to adopt unconventional measures to stimulate the economy as the benchmark interest rate remains close to zero. For more news and resources, visit the new Swiss franc Currency Room.
