[U][B]Fundamental Headlines[/B][/U]
• [B]NZDUSD [/B]– New Zealand retail sales grew 0.1% from a revised 1.7% in November, signaling that record high interest rates and oil are weighing on consumers. Although sales at department stores increased, supermarket sales were unchanged which makes up a fifth of the total. Retail demand has slowed greater than the RBZ has expected, which raised rates four times last year in an attempt to slow demand. For more news and resources, visit the new New Zealand Dollar Currency Room.
• [B]EURUSD [/B]– Europe posted its first trade deficit in more than a year as exports declined for the second straight month by 2.5%, led by reductions in crude materials and energy. The euro region had a seasonally adjusted trade gap of 2.1 billion Euros, compared with a surplus of 2 billion Euros the previous month. The region saw a decline in oversea sales -weighed down by the slumping U.S. economy- and a surge in imports from China. The European region is clearly showing signs of slowing, evidenced by the reduction in exports and slowing GDP, and may force the ECB to start to consider future rate cuts. Discuss the topic and your trade ideas in the EUR/USD Forum.
• [I] Bernanke Open to a Sizable Rate Cut[/I] (link) – Wall Street Journal
• [I]Citigroup Fund Bars Exit by Investors After Bad Bed[/I] (link) – Wall Street Journal
• [I] New York’s Dinallo Considers Splitting Bond Insurers /I – Bloomberg
• [I]European Stocks Fall as U.S. Downturn Fears Weigh[/I] (link) – Reuters
• [I]China’s Trade Surplus Climbs 23% to $19.5 Billion[/I] (link) – Bloomberg
• [I]Europe Posts First Trade Deficit in 16 Months /I – Bloomberg
