[B]Fundamental Headlines[/B]
[I]
• Bank Deals Put U.S. On Hook for Billions – Wall Street Journal
• Big Firms Quick to Collect, Slow to Pay – Wall Street Journal
• Fed makes $14bn profit on crisis loans – Financial Times
• Consumer Prices in Europe Declined Less Than Economists Forecast in August – Bloomberg
• Stocks Drop Worldwide, Led by China on Earnings; Yen Gains on DPJ Victory Bloomberg[/I]
[B]
EURUSD[/B] – The Euro-Zone CPI-Estimate for August crossed the wires at -0.2% which surpassed economist forecasts of -0.3% as the economy’s recovery has started to alleviate deflationary pressures. The gauge sharply rose from last month’s 0.7% reading signaling that he impact on prices from the sharp fall in oil prices has started to dissipate. An increase in consumer prices will be the ECB on alert as they look to adhere to their price stability mandate. The central bank has maintained that they aren’t looking to raise rates in the near term, but if upside risks to inflation increase, they may be forced to start tightening sooner than expected. Discuss the topic and your trade ideas in the EUR/USD Forum.