[B]Fundamental Headlines[/B]
[I]• U.K. to Sustain Its Stimulus Efforts – Wall Street Journal
• Slack Attack: Fed Faces Test on Inflation – Wall Street Journal
• US-EU rift clouds climate summit – Financial Times
• Bernanke Effort to Accelerate Growth May Be Undermined by Loan Contraction – Bloomberg
• U.S. Banks Will Need More Capital to Cover Credit Losses, CLSA’s Mayo Says -Bloomberg[/I]
[B]USDCHF–[/B] Switzerland’s State Secretariat for Economic Affairs raised its GDP forecast to -1.7% from the -2.7% estimate in June and projects 0.4% growth in 2010, as personal consumption is expected to rise 0.3% versus the previous forecast for a 0.2% contraction. The SECO also raised their estimates for exports which was reinforced by a 2.0% gain in demand during August according to the Swiss trade report… A surge in demand from China helped offset continued weakness from the U.S. and Europe. However, a 2.5% decline in imports speaks to the weak domestic demand which continues to be weighed by rising unemployment which is forecasted to reach 5.2% in 2010. For more news and information visit the Swiss Franc Currency Room.
[B]NZDUSD–[/B] New Zealand’s Current Account Balance unexpectedly showed a surplus of NZ$124 million in the second quarter, marking the first quarterly surplus since the first quarter of 2003. Economists were forecasting a –NZ$1.98 billion result ahead of the release. In annual terms, the deficit narrowed to –NZ$10.6 billion or 5.9% of GDP, the smallest share of total output in nearly 5 years. However, imports fell -19.6% from a year earlier, outpacing a -3.5% decline in exports as consumer demands remains weak. A global recovery should continue to drive demand for commodities and an increasing positive trade discrepancy. As inventories deplete we may start to see upward pressure on prices. In turn, the island nation could start to import inflation which may force the RBNZ to start considering raising rates. For more news and information visit theNew Zealand Dollar Currency Room.