[B]Fundamental Headlines[/B]
• [B]AUDUSD [/B]– The RBA raised its benchmark interest rate a quarter point, bringing it to a 12-year high of 7.25 percent. It was the second increase in less than a month as the central bank tries to reign in the fastest inflation since 1991. Governor Glenn Stevens gave an indication that rates may remain unchanged for the foreseeable future, when he commented, there is also ” Tentative evidence that some moderation in households demand is beginning to occur”.
• [B]USDCHF [/B]– Switzerland’s economy unexpectedly accelerated to its fastest pace in more than two years as GDP rose by 1% in the 4Q. The country has been in the midst of a boom fueled by consumer spending. However, declining exports are signaling that the U.S. slowdown and credit crisis may begin to take a toll. Look for the SNB to keep rates steady at their next meeting, but with CPI holding steady at 2.4%, a rate cut may be forthcoming by years end. For more news and resources please visit our Swiss Franc Currency Room.
• [B]EURUSD [/B]–European consumer spending dropped 0.1 percent for the first time in six years, slowing the pace of economic growth, as GDP printed at 0.4 percent.The region also saw declines in exports and investment, decreasing the prospects that companies will continue to hire at their current pace. The ECB’s focus may start to shift towards spurring growth as consumer purchasing power continues to be sapped by increasing food and energy costs, and possibly cut rates in the second half of the year. Discuss the topic and your trade ideas in the EUR/USD Forum.
• [I]Fannie and Freddie Set Stricter Appraisal Rules[/I] (link) – Wall Street Journal
• [I]Hard Assets An Easy Call? /I– Wall Street Journal
• [I]Buffet Warns On U.S. Recession /I – Financial Times
• [I]Dollar Falls Against The Yen On Bets Fed Will Lower Rate 0.75-Point /I – Bloomberg
• [I]Europe Economy Cools As Consumer Spending Declines /I – Bloomberg
