[U][B]Fundamental Headlines[/B][/U]
• [B]AUDUSD [/B]– Australian CPI accelerated at 4.2% in the first quarter. Inflation rose above 4% for the first time in seven years increasing 1.3% from the previous three months. The stripped down measurement ex volatile items saw an increase of 1.2%, signaling that price appreciation will continue to sustain. The price instability has increased speculation that another rate hike may be in store from the central bank. However, the RBA will be hard pressed to raise rates going forward with their economy slowing. For more news and resources, visit our Australian Dollar Currency Room.
• [B]GBPUSD [/B]– The BoE was far from unanimous in their vote to cut rates by a quarter point at their April policy meeting, with a 6-2-1 vote. Perennial dove David Blanchflower voted for a half point cut, while Andrew Sentance and Tim Besley felt that a cut wasn’t warranted. The central bank saw the downside risks of consumer spending and investment outweighing the concerns over inflation, although many felt that inflation would continue to rise. The somewhat hawkish comments has increased speculation that the central bank may refrain from cutting rates further. For more news and resources, visit our GBP/USD Forum.
• [B]EURUSD [/B]– The Eurozone IFO gauge rose to 51.9 from 51.8 in March. An unexpected acceleration in growth from the service industry to 51.8 from 51.4 offset a decline in manufacturing. Meanwhile, industrial new orders increased by 0.6% beating estimates of a decline of 0.4%. The European region continues to remain resilient which may embolden the ECB’s to raise rates as inflation concerns mount. Discuss the topic and your trade ideas in the EUR/USD Forum.
• [I]Clinton Wins Pennsylvania /I – Wall Street Journal
• [I]SEC Rebuffs Lawmakers Over Bear[/I] (link) – Wall Street Journal
• [I]Oil Nears $120 As Markets Tighten /I – Financial Times
• [I] European Services Growth Unexpectedly Accelerated ([/I][link)](javascript:void(0);/1208949222907/)– Bloomberg
• [I]Ambac Posts Loss on CDO Write downs, New Business Drops[/I] (link) – Bloomberg
