[B]Fundamental Headlines[/B]
• [I]Apartment Vacancy Rate Hits 22-Year High – Wall Street Journal[/I]
[I]• Obama Makes His G-8 Debut – Wall Street Journal
• Hu quits G8 trip to tackle Xinjiang crisis– Financial Times
• Stocks, Oil Decline on Economy Concern; Ruble Falls, Yen Gains Influence – Bloomberg
• China Detains Rio Tinto Executive on Espionage Suspicion, Australia Says – Bloomberg[/I]
[B]EURUSD[/B] – German industrial production in May rose 3.7% from a revised -2.6% the month prior, which was the biggest gain in 16 years. It far exceeded initial estimates of 0.5% as capital goods sharply rose 8.3% from -6.9% signaling an increase in optimism from managers. The added investment in machinery and other fixed assets bodes well for future growth. Meanwhile, the final GDP figures for the first quarter were unchanged at -2.5%, but the yearly figured was revised slightly lower to -4.9%. The first quarter saw a 1.5% drop in industrial activity and if the German figures are an indication the economy is already seeing improvement in that sector which may bode well for second quarter growth figures. Discuss the topic and your trade ideas in the EUR/USD Forum.
[B]GBPUSD[/B] – Halifax House prices unexpectedly fell by 0.5% in June following a 2.6% improvement the month prior. Despite the monthly decline the yearly figure rose from -16.3% to -15.0%, but missed expectations of -14.4%. The stabilization of the housing sector is a critical element to a U.K. recovery and if values begin to regress then it may put a recovery in jeopardy. Indeed, yesterday’s NIESR GCP estimate showed that growth is expected to contract by another 0.4% in the second quarter. Therefore, speculation has increased that the MPC will add to their quantitative easing measure at tomorrow’s policy meeting. Discuss the topic and your trade ideas in the GBP/USD Forum