[U][B]Fundamental Headlines
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• [B]GBPUSD [/B]– The second estimate for U.K. Q1 GDP reaffirmed the initial growth projections of 0.4% Quarterly and 2.5% yearly, which would be the slowest pace since 2005. Growth is being slowed by declining investment in business services and construction. The Gross fixed capital formation fell 1.6%, the lowest in almost five years. Although private consumption for the first quarter jumped the most in almost three years, rising inflation is expected to weigh on it going forward. Despite, the BoE’s projection that the economy may see a couple of quarters of negative growth, it is expected to leave rates unchanged as it focuses on bringing inflation towards its 2% target. Discuss the topic and your trade ideas in the GBP/USD Forum.
• [B]EURUSD [/B]– EZ PMI fell to 51.1 in May from 51.9 the month prior, and significantly lower than estimates of 51.5. The service sector, which accounts for two thirds of GDP fell to 50.6 from 52.0 well short of economist’s predictions of 51.7, as it saw declines in employment, new and outstanding business and business expectations. Manufacturing fell as expected to 50.5 from 50.7 on weaker employment. The regions two largest economy’s Germany and France both saw a significant decline in services and mild improvements in manufacturing. Discuss the topic and your trade ideas in the EUR/USD Forum.
•[I] Oil Industry, Lawmakers Aim To Lift Bans On Drilling /I – Wall Street Journal
• [I]Ford Stumble Signals Rising Risks /I – Wall Street Journal
• [I]Asia To Cut Subsidies As Oil Hits $135 [/I] (link) – Financial Times
• [I]European Services, Manufacturing Growth Slowed On Oil, Euro Appreciation /I – Bloomberg
• [I] Brown Suffers New Setback As Labour Loses U.K. Parliament Seat /I – Bloomberg