[U][B] Fundamental Headlines[/B][/U]
• [B] EURUSD[/B] – Producer prices in Europe climbed 1.2 percent in from April to May, validating ECB President Trichet’s concerns that inflation is becoming an intricate part of the economy. The annual increase in PPI was a record 7.1 percent, exceeding analysts expectations. Increased input prices are boosting expenses for companies, which passing on the additional costs to consumers. Consumer-price growth is becoming more of a concern, as ECB hawks have warned that the central bank could hike their benchmark interest rate to 4.25 percent, which would be their highest in seven years. Discuss the topic and your trade ideas in the EUR/USD Forum.
• [B]AUDUSD[/B] – Borrowing costs may be on the rise again, as Australian retail sales rose 0.7 percent in May. Consumer spending increased on non-essentials, fueling the belief that households are managing record gas prices and the highest inflation in twelve years efficiently. Additionally, the jobless rate was 4.3 percent in May, nearing the lowest level in three decades, as demand for Australia’s iron ore and coal increases. For more news and resources, visit our Australian Dollar Currency Room.
• [B]GBPUSD [/B]– The U.K. Purchasing Managers Index of Construction fell to 38.8 in June, down from 43.9 in May. The construction industry, representing 6.0 percent of the U.K.’s economy, contracted at the fastest rate in eleven years. Confidence, new orders, and employment also fell, amid the highest measure of input prices, at 81.5. Discuss the topic and your trade ideas in the GBP/USD Forum.
• [I]Microsoft Seeks Partners for a New Run a Yahoo[/I] (link) – Wall Street Journal
• [I]Consumer Pullback Hurts Marks & Spencer[/I] (link) – Wall Street Journal
• [I]Deutsche Dismisses Profit Warning Fears[/I] (link) – Financial Times
• [I]CDO Creators Seek Redemption, and Profits, from Mortgage Market /I – Bloomberg
• [I]Leveraged Loan Prices Drop to April Lows on Default Concerns[/I] (link) – Bloomberg
