[B]Fundamental Headlines[/B]
[I]• Fed Frets Over Commercial Real Estate – Wall Street Journal
• Office Rents Dive, Vacancies Rise – Wall Street Journal
• German manufacturing rebound gathers strength – Financial Times
• Europe Economy Contracted More Than Estimated in Second Quarter on Exports – Bloomberg
• Emerging-Market Stocks Climb to 13-Month High, Gold Paces Commodity Rally -Bloomberg[/I]
[B]
EURUSD-[/B] The final 2Q GDP reading for the Euro-Zone was revised lower to -0.2% from -0.1% as investment, consumer spending and exports were lower than expected. A rise in government spending to 0.7% from a earlier estimate of 0.4% helped prevent a deeper contraction. Public spending has helped fill the gap in demand, but when it disappears will the potential for a recovery be threatened. A 1.4% rise in German factory orders during August is an encouraging sign. Economist were looking for a 1.1% gain following July’s 3.1% surge. A 14.9% jump in autos orders may not be sustainable and could be masking broader weakness. The ECB will remain cautious with existing downside risks to growth which should leave them on hold at tomorrow’s policy meeting. To discuss this and other ideas visit the EUR/USD Forum.
[B]
USDCHF-[/B] Swiss unemployment rose to 3.9% from 3.8% in August, its highest level in eleven years. The Swiss economy is starting to show signs of emerging from its recession but until export demand strengthen companies may continue to shed workers as they try and cut costs. Looking at the breakdown we see that the jobless rate for 15-24 year olds is the highest at 5.4% which is a trend that we are seeing globally as more experienced workers settle for entry level positions. For more news and information, please visit the Swiss Franc Currency Room.