The German wholesale price index fell 0.9% in March after posting a 0.1% decline in the previous month, and the data reinforces the dovish outlook held by the European Central Bank as price growth falters. Meanwhile, the annualized figure slipped 8.0% from the previous year, which is the largest decline since January 1987
[U][B]Fundamental Headlines[/B][/U]
[I]• RBS Shortlists Bidders for Asian Assets[/I] – Wall Street Journal
[I]• U.S. May Disclose Bank Stress-Test Results[/I] – Wall Street Journal
[I]• UBS to cut 11% of global workforce [/I]– Financial Times
[I]• Intel Falls After Otellini Says Economy Is `Fragile,’ Can’t Predict Growth[/I] – Bloomberg
[I]• Weber Urges End to ECB Rate Cuts at 1% on Concern Lending to Stay Frozen[/I] – Bloomberg
[B]EURUSD[/B] – The German wholesale price index fell 0.9% in March after posting a 0.1% decline in the previous month, and the data reinforces the dovish outlook held by the European Central Bank as price growth falters. Meanwhile, the annualized figure slipped 8.0% from the previous year, which is the largest decline since January 1987, and as the outlook for growth and inflation remains bleak, the ECB is likely to ease policy further as price growth falls well below the 2% target. Discuss the topic and your trade ideas in the EUR/USD Forum.
[B]GBPUSD[/B] – The U.K. DCLG house price index recorded a 12.3% annual decline in February, which is the weakest reading since comparable records began in 2000, and compares to an 11.5% drop in January. Although the report is considered to be lagging indicator, the DCLG report confirms the downward trend seen in the U.K property market during February, and the data suggests that the collapse in the housing may continue as credit conditions remain far from normal. Meanwhile, a separate report from the Royal Institution of Chartered Surveyors showed U.K. house prices continue to fall in March, but has moderated to -73% from -78% in the previous month, which is the slowest pace of growth since February 2008. The data was in-line with the Nationwide house price indicator released earlier this month, which suggested that the pace of price deterioration is slowing, and the report foreshadows an improved outlook for the DCLG’s measure for home prices in March. Discuss the topic and your trade ideas in the GBP/USD Forum.
