[B]
Fundamental Headlines[/B]
[I]• BofA Seeks to Repay Part of Bailout – Wall Street Journal
• Asia Data Show Recovery on Track – Wall Street Journal
• China’s manufacturing continues to grow – Financial Times
• Manufacturing in U.S. Probably Grew in August for First Time in 19 Months – Bloomberg
• European Stocks, U.S. Futures Decline; Copper Gains on China Manufacturing -Bloomberg[/I]
[B]EURUSD[/B] – German unemployment unexpectedly fell by 1,000 versus expectations of an increase of 30,000, which left the unemployment rate at 8.3%. Europe’s largest economy saw the number of unemployed decline for a consecutive month but that did not prevent the jobless rate for the Euro-Zone from rising to a 10-year high of 9.5%. ECB officials have warned that employment may lag improvements in the economy, which could limit the scope of a recovery. Indeed, the final Euro-Zone PMI manufacturing reading was revised higher to 48.2 from 46.3 the month prior. The central bank is expected to keep rates on hold until they see unemployment peak despite the improvement in activity in the region. Discuss the topic and your trade ideas in the EUR/USD Forum.
[B]GBPUSD[/B] – U.K. mortgage approvals rose to the highest level in 15 months in July, as banks granted 50,123 home loans. Lower prices and interest rates have spurred demand, which has helped stabilize the sector. However, the consumer credit report showed total lending fall by £217 million, which could influence future consumption and domestic growth. This has been a concern for the BoE and the reason why they chose to add an additional £50 billion to their asset purchase program. Meanwhile, the manufacturing sector fell back into contraction in July with a reading of 49.7 following a revised 50.2 the month prior. A decline in activity could discourage companies from hiring new workers, which will add to the woes of the labor market. Declining incomes and limited credit sources will make it difficult for consumer s to return to normal spending patterns, which could jeopardize an economic recovery. Discuss the topic and your trade ideas in the GBP/USD Forum