[B]
Fundamental Headlines[/B]
[I]• G-20 Near Deal On Economy – Wall Street Journal
• Battle Brews Over Unused TARP Cash – Wall Street Journal
• World leaders to expand G20 powers – Financial Times
• Yen, Bonds Advance as Central Banks Consider Withdrawing Stimulus Measures – Bloomberg
• Covered Bond Issuance Surges to Busiest in Two Years -Bloomberg[/I]
[B]EURUSD[/B]– German consumer confidence rose to a 16-month high of 4.3 from 3.8 in September. Optimism rose as the German economy unexpectedly emerged from its recession last quarter on the back of government stimulus. Meanwhile, the final French GDP figures showed the region’s second largest economy also ended its downturn with growth of 0.3%. A 0.2% increase in household consumption combined with government transfers helped spur growth. A 0.9% decline in Gross fixed capital formation was the lowest in five quarters and a sign that businesses and consumers are starting to put money back to work. To discuss this and other ideas visit the EUR/USD Forum.
[B]USDCHF[/B]– The Swiss KOF Institute economic forecast lowered its GDP estimate for the Swiss economy to -3.4% from -3.3%. The think tank predicts that a period of stagnation will be followed by a slow recovery with growth in 2010 of 0.1%. However, expectations of a 0.3% improvement in private consumption will leave the burden on the government to pick up the slack to avoid a double dip recession. According to KOF, consumer prices will fall 0.4% in 2009 due to the oil price collapse in the second half of 2008 and inflation in the coming year will hit 0.5%. This will keep the threat of intervention from the SNB alive as deflation risks remain.