[U][B]Fundamental Headlines[/B][/U]
• [B]USDJPY [/B]– Japanese department store sales rose 0.9%, rebounding from consecutive negative months. Major cities saw significant increases led by Tokyo which rose from -1.6% in January to 2.8%, its highest reading in six months. Looking at the components, the largest gains were in accessories and household appliances. Despite the numbers benefiting from the leap year, growing domestic consumer spending provides hope that the world’s second largest economy can withstand a U.S. slowdown. For more news and resources please visit our Yen Currency Room.
• [B]USDCHF [/B]– Swiss industrial production increased 9.1%, which was more than the 7.9% economics predicted. Manufacturers saw increased demand from emerging markets which offset the slowdown from the U.S. However, new orders slowed to 9.3% from 15.3% the prior quarter. Therefore, despite inflation concerns the SNB isn’t expected to raise rates and may start to consider a preemptive rate cut. For more news and resources please visit our Swiss Franc Currency Room.
• [B]GBPUSD [/B]– Rising gas and electricity prices led to the U.K. inflation rate rising to a nine month high of 2.5%. The consumer price index saw sharp increases in food and industrial goods, which rose 15.1% and 39.6% respectively. Thus, confirming the MPC’s concerns that inflation will rise above their 3% threshold by year’s end, which has prevented them from cutting their benchmark further. However, core inflation declined to 1.2% from 1.3%,which may give the BoE room to lower rates again. Discuss the topic and your trade ideas in the GBP/USD Forum.
• [I]The Week That Shook Wall St, Inside the Demise of Bear Stearns [/I] (link) – Wall Street Journal
• [I] U.S. Mulls Next Steps In Crisis [/I] (link)– Wall Street Journal
• [I]Scramble To Calm Markets [/I] (link) – Financial Times
• [I]Bernanke May Cut Benchmark Rate Most Since Volker /I – Bloomberg
• [I]China to Take Forceful Steps On Inflation, Wen Says [/I] (link) – Bloomberg
