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Fundamental Headlines[/B][/U]
• [B]USDCHF[/B] – Swiss industrial production output declined 9.3% in the first quarter bring the annualized rate down to 4.3% from 9.6% the quarter prior. The U.S. slowdown and decreasing margins have weighed on manufacturers. The sector may continue to slow as new orders slowed to 5.3% from 9.2% the quarter prior. For more news and resources, visit our Swiss Franc Currency Room.
• [B]GBPUSD[/B] – Inflation in the U.K. rose to 3.3% in May from 3.0% the month prior. It was the highest level since at least 1997 when records began. BoE Governor King was required to write a letter of explanation to Chancellor Darling, in which he stated that inflation is expected to rise above the 4% mark and that the path for interest rates to meet the 2% target was uncertain. Discuss the topic and your trade ideas in the GBP/USD Forum.
• [B]EURUSD [/B]– German investor confidence fell to minus 52.4, which was the lowest in more than fifteen years. The gauge fell from minus 41.4 in May and far below economists expectations of minus 42.5. Accelerating inflation has weighed on investor confidence and the outlook for the economy. Meanwhile, the European trade balance turned to a surplus of 2.2 billion from a deficit of 1.5 billion, as exports rose 6.2% in April. The strong trade report supports ECB President Trichet’s contention that growth in the region is sustaining and that the focus for the central bank should remain on price stability. Discuss the topic and your trade ideas in the EUR/USD Forum.
• [I]Fed Mood Tilts Away From Rate Increase /I – Wall Street Journal
• [I]Oil Falls Back After Almost Hitting $140[/I] (link) – Wall Street Journal
• [I]Goldman Close To $7Bn SIV Bailout /I – Financial Times
• [I]German Investor Confidence Dropped To 15-Year Low /I – Bloomberg
• [I] Treasuries Rise As Economists Estimate Housing Starts Declined[/I]. (link) – Bloomberg
