[B][U]Fundamental Headlines[/U][/B]
• [B]NZDUSD[/B] – Producer prices in New Zealand jumped more than expected during the third quarter on increased dairy costs, as input prices rose 2.3 percent while output prices gained 1.6 percent.
• [B]AUDUSD[/B] – The Westpac consumer confidence index for Australia dropped 4.2 percent on surging gasoline prices while wage growth hit a annual pace of 4.2 percent, with the latter supporting the RBA’s rate hike last week.
• [B]GBPUSD[/B] –UK labor markets remained tight in October as jobless claims fell for the 13th consecutive month by 9,900. However, the BOE’s Quarterly Inflation Report proved to be far more neutral, as the central bank said that inflation risks are ‘balanced’ while CPI is forecasted to settle at 2.0 percent, assuming at least one rate cut in 2008.
• [B]EURUSD[/B] – German GDP expanded 0.7 percent in Q3 with the help of a pick up in investment and construction growth. Household spending also helped contribute slightly to GDP growth, but trade, on the other hand, did not as the appreciation of the Euro likely played a role in deterring foreign demand for exports from the country.
• [I]Asian Stocks Rise the Most in Eight Weeks; Toyota Advances[/I] (link) - Bloomberg
• [I]Mizuho Cuts Full-Year Forecast on Subprime Loss[/I] (link) - Bloomberg
• [I]Europe Economic Growth Accelerates More Than Forecast[/I] (link) – Bloomberg
• [I]Bank of England Signals Need for Rate Cut in 2008[/I] (link) - Bloomberg
• [I]HSBC Takes $3.4 Billion Charge On Bad Loans at U.S. Unit[/I] (link) - The Wall Street Journal
• [I]Soaring Oil Prices Could Hit a Speed Bump[/I] (link) - The Wall Street Journal
