The Swiss SECO consumer confidence index for April dropped to its lowest level in more than six years as households face a weakening labor market paired with fears of a deepening economic downturn. The index plunged to -38 from -23 in January, amid expectation for a decline to -25, and the breakdown of the report showed that the gauge for job security slumped to -127 from -99 in the previous quarter
[U][B]Fundamental Headlines[/B][/U]
[I]• UBS Posts Loss, Warns on Credit Provisioning[/I] – Wall Street Journal
[I]• More Banks Will Need Capital[/I] – Wall Street Journal
[I]• Porsche and VW to clash over rescue plan[/I] – Financial Times
[I]• Yuan May Account for 50% of Hong Kong-China Trade [/I]– Bloomberg
[I]• Trichet’s ECB Unity Drive Complicated by Mixed Signs[/I] – Bloomberg
[B]CHFUSD[/B] – The Swiss SECO consumer confidence index for April dropped to its lowest level in more than six years as households face a weakening labor market paired with fears of a deepening economic downturn. The index plunged to -38 from -23 in January, amid expectation for a decline to -25, and the breakdown of the report showed that the gauge for job security slumped to -127 from -99 in the previous quarter, while the economic outlook for the next 12 months slipped to -64 from -57. For more news and resources, visit the new Swiss franc Currency Room.
[B]EURUSD[/B] – Factory-gate prices in the Euro-Zone dropped the most in 22 years as the worst recession in more than six decades forced companies to cut prices. The producer prices index fell 0.7% in March, after falling 0.4% in the previous month, while the annualized rate slipped 3.1% from the previous year, after posting a 1.7% drop in February. The fall in the PPI was stronger than anticipated as energy costs plunged 7.3% from last year, while prices for intermediate goods and non-durable goods were also sharply down on the year as lower oil prices fed through the product chain. Discuss the topic and your trade ideas in the EUR/USD Forum.
[B]GBPUSD[/B] – The U.K. construction PMI jumped to 38.1 from 30.9 in the previous month, which crossed the wires much stronger than the 31.9 forecast held by the economists. The data suggests that the housing market is beginning to stabilize as the government takes unprecedented steps to steer the economy out of the recession however, as the European Commission expects the U.K. economy to contract by 3.8% in 2009, tightening credit conditions paired with the downturn in the labor market is likely to weigh on economic activity going forward. Discuss the topic and your trade ideas in the GBP/USD Forum.
