[B]Fundamental Headlines[/B]
[I]
• BOE Mulls Lowering Reserve Rate – Wall Street Journal
• No Easy Exit for U.S.As Housing’s Savior – Wall Street Journal
• Citi explores sale of government stake – Financial Times
• Chinese Response to U.S. Tire Tariffs Won’t Provoke Trade War, Obama Says – Bloomberg
• Obama Says U.S. Job Losses Ending, Vows to Push on Wall Street Regulations -Bloomberg[/I]
[B]GBPUSD[/B]– U.K. consumer prices in August rose 1.6% from a year ago which was down from 1.8% the month prior, but more than economist predictions of 1.4%. Rising oil prices have started to slow the decline of inflation and with the 0.4% gain in prices during the month could lead to the end of the current disinflation cycle. This could start to raise interest rate expectations. However, BoE Governor Mervyn King left the door open today for further rate cuts demonstrates the central banks concerns over tight lending standards and still maintains the view that inflation will remain below their 2% target throughout the remainder of the year. Discuss the topic and your trade ideas in the GBP/USD Forum.
[B]
EURUSD[/B] – German investor confidence rose to its highest level in three year in September. The ZEW survey of investor and analyst expectations, increased to 57.7 from 56.1 but missed forecasts of 60.0. Confidence continues to rise as the economy stabilizes but the outlook could start to dim if signs of growth fail to emerge. The ECB has recently talk down expectations of a rate increased as they still see downside risks to growth which could keep them on hold until mid-2010. Discuss the topic and your trade ideas in the EUR/USD Forum.