[B]Fundamental Headlines[/B]
• [B]USDJPY – [/B]The Bank of Japan kept their benchmark rate at 0.50%. Following the announcement, Governor Shirakawa cut the central bank’s forecast for growth and raised the projection for inflation. However, the MPC leader stressed that the economy was not entering a period of stagflation, as expectations are that growth will recover after a temporary slowdown and inflation will moderate. For more news and resources, visit our New Zealand Dollar Currency Room.
• [B]EURUSD – [/B]The June German Zew gauge fell to -63.9 from -52.4 the month prior and significantly below the expected -55.0. The reading was the lowest in more than 16 years as rising inflation and interest rates weighed on investors confidence. The evidence continues to build that the European economy is slowing with industrial production falling 1.9% in May, which may limit the ECB’s ability to raise rates further as they try to adhere to their mandate for price stability. Discuss the topic and your trade ideas in the EUR/USD Forum.
• [B]GBPUSD – [/B]U.K. CPI rose 0.7% in June, bringing the annualized rate to 3.8%-the fastest pace in eleven years. Rising food and energy costs pushed prices to the highest levels on record, and oil at $147 per barrel, will keep them elevated. Indeed, BoE Governor King expects that inflation will rise above 4% and maintain those levels until next year. Discuss the topic and your trade ideas in the GBP/USD Forum.
• [I]Paulson Drove Plan To Shore Up Fannie Mae, Freddie Mac[/I] ([link](Paulson Drove Plan to Shore Up Fannie Mae, Freddie Mac - WSJ))[I] – [/I]Wall Street Journal
• [I]Regional Indexes Tumble As Bank Shares Plummet /I[I] – [/I]Wall Street Journal
• [I]Dollar Hits Record Low Against Euro[/I] (link) – Financial Times
• [I]German Investor Confidence Fell To Record In July /I[I] – [/I]Bloomberg
• [I] U.K. Inflation Rate Jumps To 11-Year High, House Prices Fall /I– Bloomberg
