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Fundamental Headlines[/B][/U]
• [B]NZDUSD [/B]– The RBNZ left their benchmark interest rate unchanged at a record 8.25% as inflation concerns still linger. Comments from Governor Ballard were more dovish than the last policy meeting and have led to speculation that a rate cut may be in store by year’s end. The MPC which raised rates to stem inflation and cool the economy is seeing growth slow faster than they expected due to the fallout from the U.S. slowdown. For more news and resources, visit our New Zealand Dollar Currency Room.
• [B]GBPUSD [/B]– U.K. retail sales fell 0.4% in March from 1.1% the month prior, the first decline in three months. Non-specialized stores saw a 2.5% decline with clothing and footwear following with a 1.7% drop in sales. The deteriorating housing market has started to weigh on consumers, as they see the value of their homes fall, while they face high mortgagee payments. For more news and resources, visit our GBP/USD Forum.
• [B]EURUSD [/B]– The IFO Institute’s measurement of German business confidence fell for the first time in four months. Rising energy costs on the back of record oil prices and a strong Euro has dimed the outlook for Europe’s biggest economy. The business climate index fell to 102.4 from 104.8; current assessment fell to 108.4 from 11.5 and expectations to 96.8 from 98.4. Although many feel that a slowdown in Europe will alleviate inflationary pressures, the ECB has remained staunch in its hawkish stance. Discuss the topic and your trade ideas in the EUR/USD Forum.
• [I] Fed Weighs Pause After Next Rate Cut[/I] (link) – Wall Street Journal
• [I]Foreclosure-Relief Plan Gains[/I] (link) – Wall Street Journal
• [I]Fears of Big Banks Failures Recede /I – Financial Times
• [I]German, French Business Confidence Slumps as Inflation Soars [/I] (link) – Bloomberg
• [I] Libor to Rise As Banks Stay Wary, Derivatives Signal /I – Bloomberg
