[B]Fundamental Headlines[/B]
[I]• CIT in Last-Ditch Rescue Bid – Wall Street Journal
• More Bank Losses Expected Globally – Wall Street Journal
• IMF warns of further recession risks – Financial Times
• ECB Lends Banks Less Than Forecast at Auction as Demand for Funding Eases – Bloomberg
• Stocks Climb Worldwide as Dollar, Treasuries Fall; Industrial Metals Gain -Bloomberg[/I]
[B]EURUSD–[/B] German unemployment unexpectedly fell to 8.2% from 8.3% as the number of out of work declined by 12,000 on a seasonally adjusted basis. However, before statistical changes were made the economy lost 10,000 jobs which could be a sign that underlining weakness still exists. Meanwhile, the European consumer price estimate fell more than expected by 0.3% versus expectations of -0.2%. The ECB has forecasted that prices will remain below their 2% target for an extended period which will allow the central bank to keep rates at their record low 1.00%. To discuss this and other ideas visit the EUR/USD Forum.
[B]
USDCHF– [/B]The KOF Swiss leading indicator for September rose to its highest level in a year. The gauge that looks to forecast the next six months of economic activity flipped from a -0.4 to plus 0.85 surpassing economist estimates of 0.3. A stabilizing global economy has given rise to exports and that combined with domestic consumption finding its footing is helping the economy emerge from its current recession. The SECO recently raised its growth outlook for 2010 to a 0.4% expansion following a 1.7% contraction thus year. Regardless, the Swiss National Bank is expected to keep rates near zero for the foreseeable future as they look to limit the Francs appreciation in order to drive demand for its products. For more information and news please visit the Swiss Franc Currency Room .