[B]Fundamental Headlines
[I]• The Economic Recovery: Fast, Slow or Neither? – Wall Street Journal
• Beijing Prepares to Appeal WTO Rule on Media Markets – Wall Street Journal
• European business trails US and UK– Financial Times
• Home Depot Profit Falls Less Than Analysts Estimate – Bloomberg
• GM Said to Add Overtime, More Shifts as ‘Clunkers’ Boosts Sales – Bloomberg[/I][/B]
[B]EURUSD[/B] – The German Zew Survey for August rose sharply from 39.5 beating expectations of 45.0 with a print of 56.1. German investor sentiment rose to its highest level since April, 2006 as markets participants are confident that the credit crisis has passed, evidenced by gains in the financial and insurance sectors. The improving outlook for exports, especially automobiles was also a contributing factor. The current situation component also saw a significant rise to -77.2 from -85. The increasing optimism may lead to an increase in capital investment which could help accelerate the economic recovery. The ECB has remained on hold but signs that growth is returning could see them take a more hawkish stance. Discuss the topic and your trade ideas in the EUR/USD Forum.
[B]GBPUSD[/B] – U.K. consumer prices were unexpectedly flat for the month of July which left the annualized reading at 1.8% versus expectations of a fall to 1.5%. Rising home and automobile prices helped offset declines in clothing and food but the gains may be fleeting if we see banks continue to employ tonight lending standards. The BoE cautioned that we could see volatility in the inflation reading but they expect it to remain below their 2% target for the remainder of the year. Discuss the topic and your trade ideas in the GBP/USD Forum.