[U][B]Fundamental Headlines[/B][/U]
• [B]USDCHF [/B]– SVME PMI eased back to 61.3 from 63.4 in December. A breakdown shows that output actually held steady, while the backlog of orders fell. While this points to a slowdown in demand, producers still appear to be faring relatively well, and with the employment index actually improving for the month, this resilience should help keep labor markets tight. Visit the Swiss Franc Currency Room for resources dedicated to the Swissie.
• [B]EURUSD [/B]– German labor markets tightened more than expected in December, as the unemployment change dropped for the 23rd consecutive month by 78,000, helping to pull the unemployment rate down to a nearly 15-year low of 8.4 percent. The news bodes well for consumption growth in the Euro-zone’s largest economy, as expansion is widely expected to take a hit in 2008. What do you think will happen to the EUR/USD? Join the discussion and voice your opinion on the DailyFX Forum.
• [B]GBPUSD [/B]– UK construction PMI unexpectedly jumped to a reading of 56 in December from a 14-month low of 54.3 with the help of business building. Nevertheless, the majority of other UK indicators suggest that the Bank of England will move to cut rates again in 2008. For more resources dedicated to this currency please, visit the new British Pound Currency Room.
• [I] Crude, Gold Soar; Stocks Off Sharply On Economy Fears[/I] (link) – The Wall Street Journal
• [I]Bernanke, King Risk Inflation to Extend Growth Party[/I] (link) – Bloomberg
• [I]Yuan Gains to Strongest Since End of Peg on US Growth Concern[/I] (link) – Bloomberg
• [I]Japan Struggles to Correct Pension-System Mistakes /I](Japan Struggles to Correct Pension-System Mistakes - WSJ)– The Wall Street Journal
• [I] US Yield Curve Is Steepest Since 2005 on Bets for Rate Cut[/I] (link) – Bloomberg
