[U][B]Fundamental Headlines[/B][/U]
• [B]USDJPY [/B]– Japanese inflation remained steady as both headline and core readings increased in January at the same pace as the month prior at 0.7% and 0.8% respectively. Additionally, household spending printed greater than expected at 3.6% versus expectations of 0.3%, which may signal that the Japanese economy is starting to stabilize as it accounts of 55% of GDP. Discuss the topic and your trade ideas in the USD/JPY Forum.
• [B]GBPUSD [/B]– U.K. house prices fell for the fourth month declining by 0.5%, the longest streak since 2000. The BoE’s recent bank cuts have failed to flow through to borrowers. The tight credit market may force the MPC to continue lowering rates in order to achieve the liquidity necessary to revive the market. Discuss the topic and your trade ideas in the GBP/USD Forum.
• [B]EURUSD[/B] – German retails sales rose more than expected in January at 1.6% against 1.0%, pulling the yearly number up to 0.6% from a revised -7.0% in December. A strong labor market and discounts brought out shoppers, giving signs that the economy can withstand a US slowdown and record oil prices. Meanwhile, Eurozone headline CPI printed as expected at 3.2%, the highest level in almost a decade, but core CPI came in lower than expected at 1.7%. The lower core reading may be a sign that inflation will ease in the future, which will only increase consumer spending and may eliminate the need for any ECB rate cuts, as many expect they will do by the end of the year. Discuss the topic and your trade ideas in the EUR/USD Forum.
• [I]Dollar Falls to Three-Year Low Against Yen, Record Versus Euro[/I] (link) – Bloomberg
• [I]Stocks Drop in Europe, Asia, Led by ING; U.S. Futures Decline[/I] (link)– Bloomberg
• [I]Commodity Prices Surge, As Investors Seek a Haven[/I] (link) – Wall Street Journal
• [I]Private Equity Eyes Hedge Funds[/I] (link) – Financial Times
• [I]AIG Drops on Biggest Loss in Firm’s 89-Year History /I – Bloomberg
