Canadian CPI fell to 0.1% from 0.4% on an annualized basis, on the back of a 0.7% gain in May. Economist were expecting the yearly rate to fall to -0.2% which would have cleared the way for the BoC to embark on quantitative easing measures.
[B]Fundamental Headlines[/B]
• [I]NYSE Plans New Venue for Derivatives[/I] – Wall Street Journal
• [I]Surprise drop in retail sales hits pound[/I] – Financial Times
• [I]World Bank raises China GDP forecast[/I] – Financial Times
• [I]European Stocks Fall in Longest Losing Streak Since January; Pound Weakens[/I] – Bloomberg
• [I]Britain Opposes EU Financial-Oversight Plans, Insists on National Control [/I]– Bloomberg
[B]USDCAD[/B] – Canadian CPI fell to 0.1% from 0.4% on an annualized basis, on the back of a 0.7% gain in May. Economist were expecting the yearly rate to fall to -0.2% which would have cleared the way for the BoC to embark on quantitative easing measures. The central bank has outlined a plan of action for such efforts but is monitoring inflation to determine when if at all to initiate it. A 2.7% jump in transportations costs led to the unexpected rise in costs followed by gains in recreation and alcohol of 1.4% and 1.2% respectively. Discuss the topic and your trade ideas in the USD/CAD Forum.
[B]
GBPUSD [/B]– U.K. retail sales unexpectedly fell by 0.6% in May as a 1.9% drop in apparel sales led a pull back in spending for the first time in three months. Non-specialized stores saw a reversal of fortunes as sales dropped 1.8% after a 3.5% gain in April. Meanwhile, Public Sector borrowing rose by 19.9 billion which was the most since record keeping began in 1993 and a sign that credit markets are thawing. The easier access to funds could spur future demand and lead to a pick up in consumption in the coming months. Discuss the topic and your trade ideas in the GBP/USD Forum.
