[U][B]Fundamental Headlines[/B][/U]
• [B]USDJPY [/B]– Citigroup received a $7.5 billion capital infusion from the Abu Dhabi Investment Authority, which will make them one of Citi’s largest shareholders. The Nikkei 225 Index and carry trades like USDJPY rallied on the news.
• [B]USDCHF [/B]– The Swiss producer and import price index rose less than expected in October at a rate of 0.2 percent from the month prior and 2.7 percent from a year earlier. However, import price inflation and solid consumption may still lead the SNB to normalize rates in December while banks like the Fed and BOE consider cutting rates.
• [B]EURUSD [/B]– The German IFO business climate survey surprisingly rose in November to 104.2 from 103.9, putting an end to six consecutive months of declines.
• [B]GBPUSD [/B]– The BOE’s Chief Economist Charles Bean issued hawkish commentary, saying, “The backdrop to our attempts to keep inflation in line with target is less favorable than it has been…If the imported component of inflation is somewhat higher, the domestically generated component needs to be somewhat lower to compensate, and that may mean we have to run a tighter monetary policy for a while to get that domestic inflation down.”
• [I]Abu Dhabi to Bolster Citigroup With $7.5 Billion Capital Infusion[/I] (link) – Wall Street Journal
• [I]HSBC Becomes First Bank To Bail Out Troubled SIVs[/I] (link) – Wall Street Journal
• [I]Swan, Australia’s New Treasurer, May Have to Roll Back Spending /I – Bloomberg
• [I]Japan Lowers Assessment of Job Market as Hiring Slows /I – Bloomberg
• [I]German Business Confidence Bounces Back /I – Financial Times
• [I]Consumer Confidence in the U.S. Probably Declined in November[/I] (link) – Bloomberg
