[B]Fundamental Headlines[/B]
[I]• Banks Face Loss of Debt Guarantee – Wall Street Journal
• Income Gap Shrinks, At Cost to Rich – Wall Street Journal
• Bank of England holds rates at 0.5% – Financial Times
• Wen Says China `Cannot, Will Not’ Pull Back From Economic Stimulus Policy – Bloomberg
• Congress Must End Bickering on Health Care, Pass Legislation, Obama Says Fight -Bloomberg[/I]
[B]GBPUSD[/B]– The BoE left its benchmark rate unchanged at 0.50% and refrained from adding to their asset purchase program which currently stands at £175 billion. There was some speculation that the central bank would consider additional measures as their recent credit report showed that small businesses and consumers continue to face tight lending standards. However, the efforts to this point have been considerable and with the economy showing signs of recovery policy makers decided that it was prudent to wait and assess the impact of ongoing efforts. Discuss the topic and your trade ideas in the GBP/USD Forum.
[B]EURUSD[/B] – The ECB release their monthly report for September in which they reiterated several of the comments that were made by President Trichet after their policy meeting. The central bank is if the view that the significant economic contraction has come to an end but a recovery will be “gradual” and “uneven”. Policy makers consider current interest rates appropriate as inflation is expected to remain “subdued”. Committee member Axel Weber said that he latest data suggest a stringer recovery than originally thought but that the crisis has damaged Euro-area growth potential. Therefore, expect the central bank to keep rates at their current record low 1.00% until inflation becomes a threat. Discuss the topic and your trade ideas in the EUR/USD Forum.