[B]Fundamental Headlines[/B]
[I]
• BOJ Governor’s Remarks Lift Yen – Wall Street Journal
• Volcker Calls for Restricting Banks’ Risk – Wall Street Journal
• Bernanke says US recession likely over – Financial Times
• Stocks Rise, Russia Leads Rally in Emerging-Market Bonds; Dollar Declines – Bloomberg
• Obama, G-20 Leaders Will Pledge to Maintain Stimulus Programs, Froman Says -Bloomberg[/I]
[B]
GBPUSD[/B]– U.K. retail sales was flat in August as consumers have curbed their spending on concerns over rising unemployment . Consumption had risen the previous two months as signs the recession was ending but with credit remaining tight and the labor market weak, Britons may start to retrench. A 1.3% decline in textiles offset rising food sales non-discretionary items took precedent. Economists were expecting a 0.1% gain and although disappointing the results may not be enough to encourage the BoE to initiate further liquidity providing measures. Discuss the topic and your trade ideas in the GBP/USD Forum.
[B]
USDCAD[/B] – Canadian consumer prices fell 0.8% from a year ago versus expectations of -0.7%, as inflation was flat in August. The decline was less then July’s 0.9% but enough to keep the BoC on hold as inflation remains subdued. Core prices fell to 1.6% from 1.8% which typically generates the most attention from policy makers. A 0.7% drop in food prices offset rises in clothing and transportation of 0.9% and 0.4% respectively. The BoC has pledge to keep rates unchanged to mid-2010 which they will maintain as long as inflation risks don’t accelerate. Discuss the topic and your trade ideas in the USD/CAD Forum.
[B]
USDCHF[/B]– The Swiss National Bank left their benchmark interest rate unchanged at 0.25% as prevailing uncertainty over future growth warrants a “cautious ”stance. Policy makers reaffirmed their commitment to keep rates at the lower end of their target band as signs of a global recovery have yet to be confirmed. However, they see no need for further government credit support measures as the Franc stability shows policy measures have been effective. The central bank also maintained their commitment to counter Franc appreciation which has helped put a floor under its crosses. Yet, the committee revised their inflation exceptions for next year to 0.9% from 0.4% which may lesson fears of future physical intervention. For more information and news visit the Swiss Franc Currency Room.