Investor confidence in the Euro-Zone rebounded from a record low in April as the Sentix survey rose to -35.3 from -42.7 in the previous month. A deeper look into the report showed that current situation increase to 55.25 from -59.75, while future expectations jumped to -12.5 from -23.5.
[U][B]Fundamental Headlines[/B][/U]
[I]• HSBC Rights Issue Raises $18.5 Billion[/I] – Wall Street Journal
[I]• IBM, Sun Talks Teeter Over Price[/I] – Wall Street Journal
[I]• IMF urges eastern EU to adopt euro [/I]– Financial Times
[I]• Deflation Dead at BlackRock; Inflation Debt Favored[/I] – Bloomberg
[I]• Geithner May Oust Executives at Banks Needing ‘Exceptional’ Aid[/I] – Bloomberg
[B]EURUSD [/B]– Investor confidence in the Euro-Zone rebounded from a record low in April as the Sentix survey rose to -35.3 from -42.7 in the previous month. A deeper look into the report showed that current situation increase to 55.25 from -59.75, while future expectations jumped to -12.5 from -23.5. Meanwhile, the retail spending in the region dropped 0.6% from January amid expectation for a 0.4% decline, which lower the annual rate to -4.0% from a revised reading of -1.7% in the previous month. Moreover, producer prices fell 0.5% in February, while the annualized rate dropped another 4.0% from the previous year, which is the biggest decline since April 1999, and the outlook for growth and inflation remains bleak as the region faces its worst economic downturn in over half a century. Furthermore, ECB board member Guy Quaden repeated that rates could go lower, and added that the ECB is also reflecting on other possible measures, which was in line with Trichet’s comments at the last press conference. The comments suggests that the ECB may continue to ease policy in the month ahead as they maintain a 2% target for inflation, and may adopt additional tools to stimulate the ailing economy as President Trichet remains reluctant to overshoot the interest rate. Discuss the topic and your trade ideas in the EUR/USD Forum.
