[U][B]Fundamental Headlines[/B][/U]
• [B]AUDUSD [/B]– The Reserve Bank of Australia’s core inflation rate accelerated to a 16-year high of 3.8 percent in Q4, which may only lead the central bank to maintain their hawkish bias even as the US slashes rates in an attempt to stave off a recession. However, with global equities trading nervously, RBA Governor Stevens may not be anxious to raise interest rates in February. For more news and resources, visit the new Australian Dollar Currency Room.
• [B]GBPUSD [/B]– The minutes from the Bank of England’s January meeting showed that the monetary policy committee’s decision to leave rates steady at 5.50 percent was an 8-1 vote. Unsurprisingly, the one MPC member to vote for a cut was über-dove David Blanchflower - who has been in favor of making policy more accommodative during the past four meetings - as he argued that a the UK faces a “greater risk of a sharp slowdown.” See more of our analysis on the BOE minutes in the GBP/USD Forum and join us in discussion, or visit our recently updated British Pound Currency Room for specific resources geared towards Sterling.
• [I]Fed Rate Cut Halts Market Free Fall, But Recession Fears Are Mounting[/I] (link)– Wall Street Journal
• [I]Japan’s Stocks Rebound After US Federal Reserve Cuts Rate[/I] (link) – Bloomberg
• [I]Trichet Says ECB Still Focused on Fighting Inflation /I – Bloomberg
• [I]BOE MPC Damps Aggressive Cut Expectations[/I] (link) – Financial Times
• [I]UK Growth Slows to Weakest Pace in More Than a Year /I – Bloomberg
• [I]Recession Concern Plagues Executives Meeting in Davos /I – Bloomberg
• [I]Martin Wolf: The Financial Turmoil Is Like An Elephant In A Dark Room[/I] (link) – Financial Times
