German Import Prices Surge To Record High Amid Weaker Consumer Prices

[B][U]Fundamental Headlines[/U][/B]

[B][U][/U][/B][I]• Boeing Softens Stance In Some Areas in Union Talks[/I] – Wall Street Journal
[I]• NYMEX Ex-Clerk Barred From Futures industry[/I] – Wall Street Journal
[I]• Pension Funds Seek Leveraged Loan Deals[/I] – Financial Times
[I]• Fannie, Freddie Mortgage Profits Reaches 10-Year High[/I] – Bloomberg
[I]• Crude Oil Rises a Third Day on Storm Threat in Gulf of Mexico[/I] – Bloomberg

· [B]EURUSD –[/B] German import prices surged to an 8 year high on the back of higher oil prices, rising to 9.3% from 8.9% in June. Higher import prices does not bode well for Europe’s largest economy as companies continue to battle slumping demand and shrinking profit margins. However, August inflation data from the various German regions showed prices easing as much as 0.4%. The fall in CPI demonstrates that dropping oil prices and slowing growth are relieving price pressures, and may give the ECB the green light to abandon their price stability mandate to focus on promoting growth. For more news and resources, visit our EUR/USD Forum.

· [B]NZDUSD –[/B] Falling commodity prices paired with lower interest rates helped New Zealand businesses to raise their growth outlook, leading the business confidence index to rise to -20.5 from -43.2 in July. A breakdown of the report showed that 4.7% of firms expect higher sales over the next 12 month, and greatly improved from July’s reading when 8.2%of firms expected sales to decline. The July rate cut by the RBNZ was the first time the central bank lowered the benchmark interest rate in a year, with Governor Alan Bollard holding a dovish outlook, suggesting that the central bank may look to lower the interest rate further. For more news and resources, visit our New Zealand Dollar Currency Room.