[U][B]Fundamental Headlines[/B][/U]
• [B]AUDUSD [/B]– The Reserve Bank of Australia kept interest rates at 7.25% in line with expectations. Governor Glenn Stevens has held rates in place for three months now, maintaining that borrowing costs are “substantial” to tame inflation. April’s decline in retail sales by -0.2% supports the MPC’s case that the economy is slowing. The central bank continues to expect inflation to remain at elevated levels in the medium term, so current interest rates will likely remain unchanged throughout the year. For more news and resources, visit our Australian Dollar Currency Room.
• [B]USDCHF [/B]– Swiss inflation rose 2.9% on an annualized basis in May, accelerating from 2.3% the month prior, which was the fastest pace in 15 years. Consumer prices gain 0.8% from April marking the largest monthly gain since October 2007. Housing and utilities costs rose 2.3% on the month which accounts for 25% of the consumer price index. Inflation concerns are becoming the main focus for the Swiss National Bank, despite the economy growing at its slowest pace in three years. For more news and resources, visit our Swiss Franc Currency Room.
• [B]EURUSD [/B]– Euro-Zone 1Q GDP was revised upward to 0.8% from the flash estimate of 0.7%. The 15 country region saw growth improve from 0.3% in the 4Q 2007 as investment and construction spending in Germany-its largest economy- grew. The region also saw producer prices increase to 6.1% on an annulazed bassi in April- the highest this decade. This will further the ECB’s Hawkish stance and increase the possibility of a rate hike. Discuss the topic and your trade ideas in the GBP/USD Forum.
• [I] Losses Push Lehman To Weigh Raising New Capital /I – Wall Street Journal
• [I]Toll Brothers Swing To Loss /I – Wall Street Journal
• [I]Soros Sounds Alarm On Oil Bubble /I – Financial Times
• [I]Government Bonds Rise as Credit Losses Stoke Demand For Havens[/I] (link) – Bloomberg
• [I]Bradford & Bringley Must Buy $4.1 Billion GMAC Loans [/I] (link) – Bloomberg
