[B]Fundamental Headlines[/B]
[I]• Sweden Official Seeks Price Targets – Wall Street Journal
• Treasury Is Criticized Over TARP – Wall Street Journal
• China to deploy foreign reserves – Financial Times
• Credit Suisse May Report Second Straight Profit, Helped by Trading Gains – Bloomberg
• Investors Are Embracing More Risk With Preference for Asia, Survey Shows – Bloomberg[/I]
[B]EURUSD[/B] – Euro-Zone industrial new orders fell 0.2% versus expectations of a 1.9% gain as orders for durable consumer goods fell 1.5%. Consumers were reluctant to make purchases of long lasting items as they scrutinized discretionary purchases. However, a 0.4% increase in capital goods orders is a sign that the outlook from businesses is improving. Indeed, we saw French consumer spending in June jump 1.4% versus expectations of 0.3% led by a 3.5% rise in apparel purchases. The report also showed durable goods consumption rising by 1.3% which could be a sign of improving optimism. For more news and resources, visit the new Swiss franc Currency Room.
[B]
GBPUSD[/B] – The BoE released the minutes from their July policy meeting showing a unanimous decision to leave rate unchanged and to refrain from adding it their quantitative easing efforts. The MPC cited signs that the economy is stabilizing and that inflation expectations are starting to rise. Next month’s quarterly inflation report will influence next month’s policy decision as the committee left the door open for further measures. Indeed, today’s CNI industrial trends report signaled that weakness remains when it fell to -59-the lowest reading since 1992. Export orders remain weak and expectations for average prices over the next three months fell to its lowest level in three months. Discuss the topic and your trade ideas in the GBP/USD Forum.