Forex News: Euro Sets New High As ZEW Surpises, Will Trichet Intervene?


[B]Fundamental Headlines[/B]

• [B]AUDUSD [/B]– Australian home loan approvals rose 2.3% against expectations of 1.0%. A weak stock market and investors trying to get ahead of the recent rate hikes led to the surge. Additionally, Job advertisements declined 2 percent as a higher interest rates are pressuring businesses. For more news and resources please visit our Australian Dollar Currency Room.
• [B]GBPUSD [/B]– The RICS House Price Balance report showed that the U.K. housing slump is worsening, as prices fell on 64.1% of homes for sale. The credit crunch is weighing on demand and fueling calls for further rate cuts by the BoE. Monetary policy decision makers which have been reluctant to cut rates further o due to inflation fears, may not have a choice much longer. Discuss the topic and your trade ideas in the GBP/USD Forum.
• [B]EURUSD [/B]– German Investor confidence has seemed to bottom out and is rebounding according to the Zew survey. The gauge unexpectedly rose to minus 32 from minus 39.5 in February. German companies are finding ways to remain competitive through increased efficiency and reduced labor costs. Although, the reading remains negative, giving the news coming from the U.S. and a recent rise in industrial production, optimism is growing. As the news flow from the Eurozone continues to surprise, expectations for an ECB rate cut by the end of the year are decreasing. Discuss the topic and your trade ideas in the EUR/USD Forum.

• [I]Weak Dollar Feels New Stress[/I] (link) – Wall Street Journal
• [I]Boeing To Protest Air-force Tanker Award [/I] (link)– Wall Street Journal
• [I]Trichet’s Signals Alarm At Euro’s Rise[/I] (link) – Financial Times
• [I]U.S. Slowdown To Be Deeper, Rebound Weaker, Says Poll[/I] (link) – Bloomberg
• [I]German Investor Confidence Unexpectedly Rises For Second Month, ZEW Shows /I – Bloomberg