[U][B]Fundamental Headlines[/B][/U]
• [B]USDJPY [/B]–The Tertiary index, which measures Japanese demand for services rose 0.3% in March from a decline of 1.6% the month prior. Consumers increased their spending on leisure activities like golf and the movies, although expectations are that rising inflation will curb demand going forward. Meanwhile, The BoJ left their benchmark interest rate unchanged as expected. A Pessimistic growth outlook is preventing the central bank from their desired course of action in raising rates. For more news and resources, visit our Japanese Yen Currency Room.
• [B]AUDUSD [/B]– The RBA released their minutes from their May 6 meeting revealing a surprising hawkish tone. The MPC seriously considered another rate hike, when markets expected that the pause would be an easy decision for the central bank. Ultimately slowing domestic growth and strains from the financial crisis outweighed wage inflation concerns and another quarter of robust exports. For more news and resources, visit our Australian Dollar Currency Room.
• [B]EURUSD [/B]– German investor confidence fell for a second moth. The ZEW survey declined to minus 41.4 from minus 40.7 in March- a more than 15 year low. Economists were expecting a gain to minus 37, but it was weighed lower by growing concerns over rising inflation, a strong Euro and the U.S. slowdown. Nevertheless, Zew officials forecasted that the ECB woudl raise rates by year’s end, leading traders to reasses their views on the direction of European Monetary Policy. Discuss the topic and your trade ideas in the EUR/USD Forum.
[I]
• Car Maker’s Boom Years, Now Look Like A Bubble /I – Wall Street Journal
• [I]Senate Strikes Housing Rescue Deal /I – Wall Street Journal
• [I] U.S. Breaks Foreign Oil Addiction /I – Financial Times
• [I]German Investor Confidence Unexpectedly Fell in May /I – Bloomberg
• [I]U.S. Credit Crisis Will Extend Into 2009, Oppenheimer Says [/I] (link) – Bloomberg
