[B]Fundamental Headlines[/B]
• [B]USDJPY [/B]– Japan’s wholesale prices rose at its fastest pace in 27 years at 3.9 percent. Rising energy and raw material costs have starting to threaten corporate profits. Cost push inflation is starting to spread to other industries and has begun to deter growth. As inflation concerns mount the BoJ and new Governor Shirakawa will be hard pressed to lower rates. If slowing growth doesn’t start to offset price appreciation then the central bank will find themselves with a tough choice. For more news and resources, visit ourJapanese Yen Currency Room.
• [B]NZDUSD [/B]– New Zealand house sales fell 53.3 percent to a seven year low. Record high interest rate have slowed the housing market and with a global slowdown on the horizon the economy will start to approach recessionary levels. Since, the RBNZ tightening policy has come to an end, the next measure for the MPC may be a rate cut. For more news and resources, visit our New Zealand Dollar Currency Room.
• [B]EURUSD [/B]– The German wholesale index jumped to 7.1%, far exceeding expectations of 6.0%. It was the highest level in two and a half years. The rise in the inflation gauge only reinforces the ECB’s decision to leave their benchmark interest rates unchanged. Discuss the topic and your trade ideas in the EUR/USD Forum.
• Microsoft Remains Likely in Crowded Battle for Yahoo (link) – Wall Street Journal
• American Cancels Another 1,500 Flights (link) – Financial Times
• IMF Rejects Criticism Over Global Turmoil (link) – Financial Times
• U.K. Darling Urges For Bigger IMF Role In Surveillance of Markets (link) – Bloomberg
• Auction Market Shrinks by $51 Billion, With Failure Rate At 71% (link) – Bloomberg
