[B]Fundamental Headlines[/B]
• Euro-Zone Consumer Prices Fall – Wall Street Journal
• ECB Weighs In on Problems With Car-Scrappage Schemes– Wall Street Journal
• Sterling climbs on Bank QE comments – Financial Times
• Pound Jumps on Speculation BOE May Pause Asset-Purchase Program – Bloomberg
• Bootle Says BOE Should Spend “a Lot” More on Bonds -Bloomberg
[B]EURUSD[/B] - European Consumer Prices in annual terms fell 0.3% after declining 0.2% in August. At the same time, core CPI was in line with expectations as it rose 1.2% from 1.3% the month prior. The decline is likely due to lower energy costs along with companies cutting jobs and reducing costs to hedge against the global downturn. Looking ahead, the central bank expects Inflation to turn positive in the 3Q, rising.1% versus the 2Q as Governing Council member Ivan Sramko said “the development of industrial production and consumer confidence suggests a stabilization of the economy.” To discuss this and other ideas visit the EUR/USD Forum.
[B]USDCHF[/B] – Switzerland’s Investor confidence rose to 65.0 in October from 58.0 the month prior, making the jump the highest since record keeping began. The data reinforces signs that the economy is stabilizing as the index which is intended forecasts 6-months ahead provides a positive outlook for Switzerland. In detail, exports rose for a second consecutive month, providing indication of a return of global demand and spending. Thus, with 67.5% of the experts surveyed expecting the economy to advance, the government’s forecast of improved growth next year may be accurate. For more news and information visit the Swiss Franc Currency Room.