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Fundamental Headlines[/B][/U]
• [B]EURUSD [/B]– French and Italian CPI figures suggest that price pressures in the Euro-zone remain strong, underpinning the hawkish commentaryissued by ECB President Trichet last week. However, disappointing ZEW survey figures indicate that investor sentiment remains very pessimistic as European financial markets remain unstable. What do you think will happen to the EUR/USD?Join the discussion and voice your opinion on the DailyFX Forum.
• [B]GBPUSD [/B]– UK CPI was slightly stronger than expected, as the index rose 0.6 percent during the month of December, which left the annual rate above the Bank of England’s 2.0 percent target at 2.1 percent. Unsurprisingly, food and transport (which includes gasoline) buoyed the headline figure, as commodity prices have rocketed in recent months. As a result, the BOE will likely remain concerned about upside inflation risks which may limit their ability to cut in February. Nevertheless, the markets will be awaiting the release of the January MPC meeting minutes and other UK economic reports in order to get a better gauge of their policy bias .Discuss this and other related subjects in the GBP/USD Forum.
• [I] Citigroup Swings to a Loss, Cuts Quarterly Dividend /I – The Wall Street Journal
• [I]Asia Skills Deficit May Force Up Pay[/I] (link) – Financial Times
• [I]Japan’s Stocks Fall, Led by Honda; Nikkei Drops Below 14,000 /I – Bloomberg
• [I]German Investor Confidence Dropped to 15-Year Low[/I] (link) – Bloomberg
• [I]UK Inflation Holds Above Bank of England Target /I – Bloomberg
• [I]Oil Prices Detach From Demand in West /I – The Wall Street Journal
