[B]Fundamental Headlines[/B]
• [B]NZDUSD [/B]– The RBNZ left rates steady at 8.25 percent, while the policy statement sounded mildly hawkish as RBNZ Gov. Bollard said “rates are now likely to remain around current levels for longer than previously thought.”
• [B]USDCHF [/B]– The Swiss seasonally adjusted unemployment rate held steady in November at a five-year low of 2.6 percent, suggesting that tight labor market conditions will keep domestic demand growth on track.
• [B]GBPUSD [/B]– The BOE cut rates by 25bp to 5.50 percent for the first time in over two years, in line with futures market expectations but against consensus estimates of economists polled by Bloomberg News, as deteriorating financial markets and tight credit conditions pose downside risks to growth. The minutes of this meeting will be published on December 19, but the markets may perceive the BOE’s statement as somewhat neutral until then as the MPC continued to cite upside inflation risks.
• [B]EURUSD [/B]– The ECB left rates unchanged at 4.00 percent, in line with expectations, though traders will be watching for ECB President Trichet’s press conference at 8:30 EST for indications of the bank’s bias.
• [I] Bush to Unveil Aid to Homeowners[/I] (link) – Wall Street Journal
• [I]‘Super Fund’ for SIVs, Hoped for $100 Billion, May Be Half the Size[/I] (link) – Wall Street Journal
• [I]Japan Leading Index Signals Slowdown for Third Month /I – Bloomberg
• [I]New Zealand Leaves Key Rate Unchanged at Record High[/I] (link) – Bloomberg
• [I]Bank of England Cuts Rates to 5.5%[/I] (link) – Financial Times
• [I]OECD Cuts World Growth Forecast /I – Financial Times
