Rightmove LLC reported a 0.4% drop in home prices for June which was the first decline in five months. The sector has been stabilizing on the back of record low interest rates and thawing credit markets. However, signs that the global economy is improving has put upward pressure on the cost of credit which may limit future demand and force sellers to continue lowering prices.
[B]Fundamental Headlines[/B]
• [I]Siemens Sees Boost From Stimulus Cash [/I]– Wall Street Journal
• [I]Fed plans repo markets revamp [/I]– Financial Times
• [I]World Bank warns on emerging markets [/I]– Financial Times
• [I]German Business Confidence Climbs for Third Month in Sign Slump Is Easing[/I] – Bloomberg
• [I]Xstrata Dealmaker Davis Moves on Anglo to Compete With BHP Billiton, Rio[/I] – Bloomberg
[B]EURUSD[/B] – The German IFO business climate reading in June rose for a third month to 85.9 from 84.3 signaling that the economy may haven bottomed. Economists forecasted an improvement to 85.0, but a jump in expectations to 89.5 from 85.9 help offset a slight decline in the current assessment to 82.4 from 82.5. However, the deterioration in the present environment underlines the troubles that he rejoin is facing. ECB member Nowotny stated that he expects the central bank to keep rates unchanged until 2010 erasing previous speculation of a possible rate hike. Discuss the topic and your trade ideas in the EUR/USD Forum.
[B]GBPUSD [/B]– Rightmove LLC reported a 0.4% drop in home prices for June which was the first decline in five months. The sector has been stabilizing on the back of record low interest rates and thawing credit markets. However, signs that the global economy is improving has put upward pressure on the cost of credit which may limit future demand and force sellers to continue lowering prices. Falling home values could weigh on the economy and make it difficult for the BoE to consider raising interest rates or initiate an exit strategy for their quantitative easing program. Discuss the topic and your trade ideas in the GBP/USD Forum.
