Canadian Inflation Rises to 3.1%; BoE Votes 7-2 to Leave Rates Unchanged

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

• [B] GBPUSD – [/B]The BoE voted 7-1-1 to leave interest rates unchanged at their July 10 policy meeting. The minutes from the meeting showed that Tim Besley voted for a quarter point rate hike, while dove David Blanchflower called for a rate cut. The majority voted to leave rates unchanged as they see the inflation rising higher than initially expected, while the housing and growth slowdown is becoming more pronounced, signaling that rates may remain unchanged for the remainder of the year. Discuss the topic and your trade ideas in the GBP/USD Forum.
• [B]EURUSD – [/B]European industrial new orders dropped 3.5% in May, which was twice the estimate. German orders fell for a sixth month as a strong Euro and made exports less competitive. The region continues to show signs of slowing growth, which may keep the ECB on hold. Discuss the topic and your trade ideas in the EUR/USD Forum.
• [B]USDCAD– [/B]Inflation in Canada rose to 3.1% in June from 2.2% the month prior, on rising energy costs. The prices accelerated faster than the 2.9% economists had expected and rose above the BoC’s target band of 1-3% for the first time since September, 2005. Nevertheless, the slowdown in retail sales to 0.4% and the 5,000 jobs lost in June may keep the MPC on hold for the remainder of the year. Discuss the topic and your trade ideas in the USD/CAD Forum.
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