[U][B]Fundamental Headlines[/B][/U]
• [B]AUDUSD [/B]– The RBA raised rates in line with expectations to an 11-year high of 7.00%, as strong Chinese demand for commodities keeps labor market conditions tight as miners struggle to keep up with output. As a result, improved sentiment and growing consumption have raised price pressures, while inflation risks remain broadly to the upside. For more news and resources, visit the newAustralian Dollar Currency Room.
• [B]GBPUSD [/B]– Conditions in the UK services sector surprisingly improved slightly in January, as PMI rose for the second consecutive month to 52.5. A breakdown of the index isn’t quite as optimistic, however, with the new business, outstanding business, and business expectations components all falling lower. Meanwhile, price figures remain robust, highlighting the Bank of England’s dilemma as they grapple with major downside risks to growth and mounting inflation pressures. Should the BoE cut this week? Discuss the topic and your trade ideas in the GBP/USD Forum.
• [B]EURUSD [/B]– The Euro-zone services sector slowed more than expected in January as PMI fell to 50.6 from 53.1, marking the lowest reading since 2003, as dwindling consumption growth is leading businesses to become more pessimistic, especially as economic outlooks for this year broadly forecast disappointing global conditions. Nevertheless, with inflation pressures in the Euro-zone remaining strong, there is little hope that the European Central Bank will attempt to accommodate deteriorating economic growth with a rate cut this Thursday. Discuss this and other topics related to the Euro in our EUR/USD Forum.
• [I] Emerging Markets Boost Toyota’s Net Income[/I] (link) – Wall Street Journal
• [I]US Credit Tightens, Demand Falls[/I] (link) – Wall Street Journal
• [I]Australia Raises Interest Rates /I – Financial Times
• [I] U.K. January House Prices Stagnate on Credit Woes[/I] (link) – Bloomberg
• [I]European Services Expand at Slowest Pace Since 2003[/I] (link) – Bloomberg
• [I]Japan’s 5-Year Notes Fall on Speculation BOJ to Avoid Rate Cut /I – Bloomberg
