BoE And ECB Leave Rates UnChanged


[U][B]Fundamental Headlines[/B][/U]

• [B]USDCHF [/B]– Swiss unemployment rose for the first time in more than four years to 2.6% from 2.5% the month prior. Job losses are mounting in the financial sector on the back of the U.S. subprime crisis. However, the overall economy remains strong which should be supported for the labor market going forward. For more news and resources, visit our Swiss Franc Currency Room.
• [B]GBPUSD [/B]– The BoE left their benchmark interest rate unchanged at 5.00% as they look to gauge inflation risks. The central bank is concerned that inflation will breach its 3% threshold requiring governor King to write a letter of explanation to the government. Consensus is that he MPC will cut rates at their June meeting by a quarter point, making it four since November 2007. Discuss the topic and your trade ideas in the GBP/USD Forum.
• [B]EURUSD [/B]– The ECB left rates unchanged as they maintain their hawkish stance and focus on price stability. The economic region is starting to show signs of slowing growth in the face of the U.S. subprime headwinds and a strong Euro. This was evident when Germany’s March industrial production fell 0.5%, as Europe’s largest economy feels the effects. Discuss the topic and your trade ideas in the EUR/USD Forum.

• Lazear Sees No Recession For The U.S. Economy (link) – Wall Street Journal
• Italy’s In Talks With U.S. Defense Firm (link) – Wall Street Journal
• Europe And U.S. United On Stronger Dollar (link) – Financial Times
• India Bans Rubber, Soybean Oil Futures To Cool Prices (link) – Bloomberg
• Bernanke Wants Fed To Pay Interest On Bank Reserves (link) – Bloomberg