[U][B]Fundamental Headlines[/B][/U]
• [B]AUDUSD [/B]– The Australian current account deficit unexpectedly narrowed during Q3 to A$15.59 billion on a pickup in demand and prices for iron ore and grain exports.
• [B]USDJPY [/B]– Increased energy costs pushed Japanese CPI higher in November, giving the Bank of Japan impetus to normalize rates. However, with consumption and wage growth tepid, they are unlikely to do so in the near-term.
• [B]EURUSD [/B]– Flash CPI estimates for the Euro-zone showed inflation rocketing 3.0 percent higher in November– the sharpest rise in six years and much higher than the ECB’s 2.0 percent ceiling – suggesting there is no room for Trichet & Co. to cut rates and raising the risk that they may even hike in December.
• [B]USDCHF [/B]– Swiss inflation was stronger than expected in November at an annualized rate of 1.8 percent, marking the fastest pace in more than six years. Meanwhile, Q3 GDP was also higher than forecasts, rising 2.9 percent from last year as exports and domestic demand remain strong. The data raises the chances that the SNB will hike next month.
• [I] Bernanke Adds to Rate-Cut Hints[/I] (link) – Wall Street Journal
• [I]ECB Acts to Calm Subprime Worries[/I] (link) – Wall Street Journal
• [I]Japan Shows First Inflation Signs as CPI Rises 0.1%[/I] (link) – Bloomberg
• [I]Japan’s Housing Starts Tumble 35% on Permit Backlog /I – Bloomberg
• [I]French President Sarkozy Pushes Retailers to Drop Prices /I – Financial Times
• [I] German Retail Sales Decline the Most in Almost a Year /I](Bloomberg - Are you a robot?)– Bloomberg
• [I]Threat of inflation remains, Says BOE’s King[/I] (link) – Financial Times
