[U][B]Fundamental Headlines[/B][/U]
• [B]USDJPY [/B]– Japanese headline inflation jumped to an annual rate of 1.2% as of March, the highest reading in a decade. Most of the rise can be attributed to the recent rallies in energy and other commodity inputs. Tellingly, removing the costs of fresh food and energy brings the metric down to just 0.1%. Nevertheless, speculation is increasing that the next policy move from the BoJ may be to raise rates. For more news and resources, visit our Japanese Yen Currency Room.
• [B]GBPUSD [/B]– The U.K. economy grew at its slowest pace in three years at 2.5%. The quarterly measurement fell to 0.4% from 0.6% compared to the last three months of 2007. A housing slump and tight credit markets have stifled growth and continue to weigh on the economy. Services, which have remained resilient, only grew 0.6%- the lowest since Q1 2005. Despite the decline the BoE may pause their easing policy to asses the effects of their recent infusion of liquidity. For more news and resources, visit our GBP/USD Forum.
• [B]EURUSD [/B]– The German import price index fell more than expected at 0.4% compared to 1.1% the month prior. Prices minus energy remained flat as record oil prices have been driving inflation. The news reduces inflation concerns for the ECB, which has tried to temper recent speculation that the central bank may their benchmark rate in the near term. Discuss the topic and your trade ideas in the EUR/USD Forum.
• U.S. Says New Find Shows Iran Still Sends Arms To Iraq (link) – Wall Street Journal
• Commercial Banks Step To Fed Window (link) – Wall Street Journal
• Frank Pushes For Mortgage Intervention (link) – Financial Times
• U.S. Notes Decline, Headed For Biggest Two Week Loss Since 1982 (link) – Bloomberg
• U.K. Economy Expands At Slowest Pace in Three Years (link) – Bloomberg
