The German ZEW reading for economic sentiment jumped to 44.8 from 31.1 as signs that the economy is bottoming has increased optimism. Investors confidence for the current situation also improved to -89.7 from -92.8 as the government’s fiscal stimulus plan is starting to gain traction.
[B]Fundamental Headlines[/B]
• [I]Koenigsegg Agrees To Buy GM’s Saab[/I] – Wall Street Journal
• [I]Bank of Japan says economy improving[/I] – Financial Times
• [I]Treasury plans strict rules for securitization[/I] – Financial Times
• [I]German Investor Confidence Jumps to Three-Year High on Signs Slump Easing[/I] – Bloomberg
• [I]U.K. Increases Planned 25-Year Gilt Sale After Bids Exceed $16.5 Billion Says[/I] – Bloomberg
[B]EURUSD[/B] – The German ZEW reading for economic sentiment jumped to 44.8 from 31.1 as signs that the economy is bottoming has increased optimism. Investors confidence for the current situation also improved to -89.7 from -92.8 as the government’s fiscal stimulus plan is starting to gain traction. Meanwhile, Euro-zone inflation fell to 0.0% on an annualized basis as we continue to see downward pressure on prices. However, the recent rise in oil prices and an improving global economy has eased deflation concerns and turned the focus toward the potential longer-term risks of rising inflation. This has raised expectations that the ECB could start considering tightening as soon as the end of 2009, as they maintain their price stability focus. The Discuss the topic and your trade ideas in the EUR/USD Forum.
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GBPUSD[/B] – U.K. CPI fell to 2.2% from 2.3% which was the lowest since January 2008, but missed expectations of 2.0%-the BoE’s target. The central banks has forecasted that inflation would fall below its desired level and remain their until 2010. However, the slower pace of the decline has raised concerns that we may see upside risk of inflation return sooner than expected. A rise in transportation costs offset a decline in energy, also clothing, food, and alcohol saw increases as demand starts to rise. The threat of rising costs could limit the ability of the central bank to extend their quantitative easing efforts which could hamper the scope of a recovery. Discuss the topic and your trade ideas in the GBP/USD Forum.
