[B]Fundamental Headlines[/B]
• [B]USDJPY [/B]– Japan’s central banks quarterly Tanakan survey, which measures manufacturers sentiment, dropped to 19 from the previous quarters reading of 23. The Japanese economy which is crtically dependant on external demand is feeling the affects of the subprime crises. This will make it difficult for the BoJ to raise interest rates going forward.
• [B]EURUSD [/B]– A 84% rise in oil prices led to German inflation accelerating to its fastest pace in 12 years, with a reading of 3.1% year over year and an increase to 0.5% month over month. Increasing food costs also contributed to the rise as they increased by 5.8% with a 46.1% increase in butter. Discuss the topic in the DailyFX EUR/USD Forum.
• [B]EURUSD [/B]– Final Eurozone CPI numbers printed higher than initial estimates lead by higher energy and food prices. It was the fastest pace since May,2001 paced by a 4.3% increase in food prices. This will only give the ECB more trepidation in following its couterparts in the US,UK and Canada in lowering rates to counter a slowing global economy. Discuss the topic in the DailyFX EUR/USD Forum
• [I]Citigroup Rscues SIV’s With $58 Billion Debt Ballout /I – Bloomberg
• [I]Money-Market Rates Fail to Respon to Bank Measures[/I] (link) – Bloomberg
• [I]German Inflation Accelerates to Fastest in 12 Years[/I] (link) – Bloomberg
• [I]European Inflation Rises More Than Initial Estimate[/I] (link) – Bloomberg
• [I]December tankan shows gloom takes hold in Japan /I – Market Watch
