[B]Fundamental Headlines[/B]
[I]• Holiday Jobs Look Scarce As Pessimism Grips Retail – Wall Street Journal
• China Cites ‘Morals’ in WTO Appeal – Wall Street Journal
• Eurozone economic growth picks up – Financial Times
• Fed May Signal Economic Recovery Has Begun While Keeping Rate Near Zero – Bloomberg
• King, Miles Opt for Consensus in Unanimous Bank of England Bond Plan Vote -Bloomberg[/I]
[B]
GBPUSD[/B]– The BoE released the minutes from their September meeting which revealed that the committee was unanimous on refraining from additional quantitative easing. The MPC also cited the potential for an upward revision to 2Q GDP but warned that current asset market signs could be “false dawns”. Members were also hopeful that the current equity and credit recovery may boost credit supply which helped ease their concerns over tight lending standards. Nevertheless, the central bank is still of the view that economic slack will remain and that inflation will be volatile. Meanwhile, the August BBA lending report didn’t erase any concerns as it showed a decline in mortgage approvals to 38,065 from 38,186, which missed estimates of 40,500. However, the total values of the loans increased which may be a sign that home values are on the rise. To discuss this and other ideas visit the ng lasting items. If the Euro-Zone economy continues to show signs of sustainable growth then the ECB may need to consider raising rates in order to stem off potential inflation. To discuss this and other ideas visit the GBP/USD Forum.">GBP/USD Forum.
[B]EURUSD[/B]– European manufacturing and service sectors combined expanded for a second month as the PMI reading rose to 50.8 from 50.4. However, the measure of business activity missed expectations of 51.3 as manufacturing remained in contraction with a reading of 49.7 despite forecasts of its first monthly expansion since May, 2008. Meanwhile, European industrial orders rose for a second month in July by 2.6% following a 4.0% improvement the month prior. Durable goods led the way with a 5.6% jump as increasing confidence has fueled demand for long lasting items. If the Euro-Zone economy continues to show signs of sustainable growth then the ECB may need to consider raising rates in order to stem off potential inflation. To discuss this and other ideas visit the EUR/USD Forum.