[U][B]Fundamental Headlines[/B][/U]
• [B]USDJPY [/B]– Japanese consumer confidence hit a four-year low in December, according to the Cabinet Office’s most recent survey, as inflation expectations soar and wage growth remains tepid. This issue has long plagued the economy and has kept consumption growth mild, though the news had little impact on the Japanese Yen. What do you think will happen to the USD/JPY? For more resources, visit the new Japanese Yen Currency Room.
• [B]GBPUSD [/B]– UK retail sales unexpectedly fell 0.4 percent during the month of November, pulling the annual rate down to a more than one year low of 2.7 percent. Indeed, it appears that the BOE’s December rate cut did little to stimulate spending during the holiday shopping season, and with economic conditions only anticipated to deteriorate further in 2008, consumption is not likely to recover much in the near-term. However, such slowdowns are expected by the BOE, and with upside inflation risks uncomfortably high for many central bankers, the monetary policy committee will likely leave rates unchanged in February. Cable tumbled on the news, though the pair has bounced back slightly. Discuss the pair in the GBP/USD Forum or visit our recently updated British Pound Currency Room for specific resources geared towards Sterling.
• [I]Default Fears Unnerve Markets[/I] (link) – The Wall Street Journal
• [I]US Leading Economic Indicators Probably Fell in December /I – Bloomberg
• [I]Bush, Democrats Rush to Roll Out Stimulus Plan /I](Bush, Democrats Rush to Roll Out Stimulus Plan - WSJ)– The Wall Street Journal
• [I]Euro-zone Borrowing Hit Severely By Credit Squeeze /I – Financial Times
• [I]Japan’s Consumer Confidence Falls to Four-Year Low[/I] (link) – Bloomberg
• [I]China’s Real Estate Shows Soft Pockets[/I] (link) – The Wall Street Journal