[B]Fundamental Headlines[/B]
[I]• Economists Call for Bernanke to Stay – Wall Street Journal
• Productivity Leaps as Companies Cut Costs – Wall Street Journal
• Subdued recovery in global oil demand – Financial Times
• Treasuries, Dollar Pessimism Rises on Speculation Global Recession to End – Bloomberg
• FSA Rules Seek to Rein In Risky Banker Bonuses Without Deferring Payments – Bloomberg[/I]
[B]GBPUSD[/B] – The Bank of England’s Inflation Report indicated that CPI may fall below the 2% target as policymakers anticipate a ‘slow recovery,’ and projects price growth to average 1.5% over the next two years. The report also said inflation will probably stay below 1% and remain volatile for the rest of 2009 as the domestic and global economy remains in a deep recession. At the same time, Governor King emphasized that the recovery will be slow and protracted, as credit conditions are likely to remain tight. Meanwhile, jobless claims in the U.K. increased 24.9K to 1.58M in July amid expectations for a 28.0K rise, while the International Labour Organization’s gauge for unemployment jumped to 7.8% in June from 7.6% in the previous month to mark the highest level since 1996. Discuss the topic and your trade ideas in the GBP/USD Forum.
[B]EURUSD[/B] – Euro-Zone Industrial Production came in much worse than expected, falling 0.6% monthly, versus an expected increase of 0.3%. This was largely attributed to a 4.2% decline in the production of durable consumer goods. The lack of demand for long lasting items may be a sign that businesses and consumer s remain cautious despite signs of an economic recovery. The ECB may be overly optimistic about a return to growth by mid-2010 which could leave them on hold for the foreseeable future despite rising interest rate expectations. Discuss the topic and your trade ideas in the EUR/USD Forum.