[B]Fundamental Headlines[/B]
[I]• Bernanke: Get Our House in Order or Dollar Faces Danger– [/I]Wall Street Journal[I]
• Bernanke Backs Regulatory Council – [/I]Wall Street Journal[I]
• Surplus Nations Urged by IMF to Take Up Baton – [/I]Financial Times[I]
• EU Says Stress Test Shows European Banks Could Withstand Deeper Recession – [/I]Bloomberg[I]
• Unemployment in U.S. Probably Rose, Payrolls Fell, Signaling Slow Recovery -[/I]Bloomberg
[B]EURUSD[/B]- The Euro-Zone producer prices index declined 7.5 percent on an annual basis in August , while increasing 0.4% from July. It seems that recent higher oil prices have started to affect the price index, giving us signs that inflation should kick back in early next year. This reaffirms the ECB’s statement yesterday to not worry about any deflationary risks in the euro zone. However consumer spending still remains low despite lower prices in the first half of 2009, so the central bank is likely to keep the same low benchmark rates well into 2010. To discuss this and other ideas visit the EUR/USD Forum.
[B]GBPUSD[/B]– United Kingdom’s house prices rose for the fifth straight month according to the Nationwide Building Society. Home values increased 0.9 percent in September, better than the expected 0.7 percent expectation. The data confirms IMF’s revised outlook for the growth in the U.K. to 0.9 percent from 0.2 percent. Meanwhile, the U.K. PMI Construction Index unexpectedly declined to 46.7, while expectations called for an increase from previous 46.7to 48.1, justifying the BoE’s cautious stance. As the central bank is expected to maintain their measures on credit easing and stimulus plans. To discuss this and other ideas visit the GBP/USD Forum.