European Investor Confidence Falters,As Leaders Back ECB's Hawkish Stance


[B]Fundamental Headlines[/B]

• [B]AUDUSD [/B]– The TD securities Ltd. Inflation index rose to 4.3% on an annualized basis. The inflation gauge showed a 0.5% gain in March prices as fuel costs and rents rose. A tight labor market lead to a 3.1% rise in job advertisements from 0.7% decline the month prior. Rising prices and increasing wage inflation has lead to speculation that the RBA’s tightening policy may not be over, despite expectations they will keep rates unchanged at tomorrow’s meeting. For more news and resources, visit our Australian Dollar Currency Room.
• [B]NZDUSD [/B]– New Zealand wages rose less than expected in the first quarter at 0.7% against 0.9%, signaling a decrease in demand for employees. The RBNZ had raised rates to a record high of 8.25% in an attempt cool the economy and lower inflation. If inflation abates, the central bank may heed calls for a rate reduction as growth continues to slow. For more news and resources, visit our New Zealand Dollar Currency Room.
• [B]EURUSD [/B]– The Sentix investors index fell sharply to 3.5 from 4.1 in April. Rising inflation and a strong Euro have dampened the outlook for investors. However, don’t expect the ECB to abandon its hawkish stance as European leaders have become more support of the central bank’s stance in the face of record commodity prices. Discuss the topic and your trade ideas in the EUR/USD Forum.

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