[B][U]Fundamental Headlines[/U][/B]
· [B]AUDUSD [/B]– The AiG Perforamance of Manufacturing Index jumped to 57.6 in December, marking the best read in more than five years. Given the economy’s focus on mining and proximity to rapidly growing regions like China, Australia has benefited from a boom in the price of commodities like gold and resilient export demand. Do you follow the Aussie daily? Visit the Australian Dollar Currency Room for resources dedicated to the Australian Dollar.
· [B]EURUSD [/B]–Euro-zone manufacturing PMI eased to 52.6 during the month from 52.8, with a breakdown of the index showing a drop in output and new orders amidst a strong Euro and softer foreign demand. What do you think will happen to the EUR/USD? Join the discussion and voice your opinion on the DailyFX Forum.
· [B]GBPUSD [/B]–UK manufacturing PMI reflected much of the same sentiment the European index, as the figure slipped to 52.9 from 54.3 on faltering production and orders. With global growth widely anticipated to take a hit in 2008, the data does not bode well for the UK economy. Meanwhile, the price components of the report reflected easing price pressures, which raises the chances that the Bank of England will move to cut rates again in 2008. For more resources dedicated to this currency please, visit the new British Pound Currency Room.
· [I]Some [/I][I]US[/I][I] Sectors to Feel Brunt of Job Weakness /I – The Wall Street Journal
· [I]Cyprus[/I][I], Malta Change to the Euro /I – The Wall Street Journal
· [I]Worst UK Outlook Since Dotcom Bust /I – Financial Times
· [I]Euro Hits High Against Sterling /I – Financial Times
· [I]Australian Manufacturing Index Jumps to 5-Year High /I – Bloomberg
· [I]Oil Rises to $97 on Speculation U.S. Supplies Dropped Last Week /I – Bloomberg
[B]Compiled by Terri Belkas, Currency Analyst for DailyFX.com[/B]