The U.K. CBI distributive trades survey fell to -44 in March from -25 in the previous month, and the data certainly does not bode well for the retail sales report due out tomorrow as private-sector spending falters.
[B]Fundamental Headlines[/B]
[I]• Regulators Seek Power to Seize Nonbanks[/I] – Wall Street Journal
[I]• Pay Falls 37% for Ford’s Mulally[/I] – Wall Street Journal
[I]• China calls for new reserve currency[/I] – Financial Times
[I]• Hedge-Fund Pay May Fall 25% in 2009 as Fees Evaporate[/I] – Bloomberg
[I]• China ‘Super Currency’ Call May Signal Dollar Concern[/I] – Bloomberg
[B]GBPUSD[/B] – The U.K. CBI distributive trades survey fell to -44 in March from -25 in the previous month, and the data certainly does not bode well for the retail sales report due out tomorrow as private-sector spending falters. Economic activity in the region is likely to deteriorate further as households face a weakening labor market paired with falling home prices, and the British government is likely to step up their efforts to shore up the economy as market participants expect the U.K. to face its worst recession since 1946. Discuss the topic and your trade ideas in the GBP/USD Forum.
[B]EURUSD[/B] – The German IFO business confidence index unexpectedly fell to 82.1 from 82.6 in March, which is the worst reading since November 1982, as firms remained fearful of a deepening recession throughout the euro-region. Meanwhile, the gauge for future expectations increased to 81.6 from 80.9 in the previous month, while the current assessment dropped to 82.7 from 84.3. The data suggests that investors are optimistic for the future however, as economists forecast the region to face its worst economic downturn since World War II, the outlook for growth and inflation remains bleaks. Moreover, IFO economist Nerb sees room for the ECB to cut the key rate by at least 50bp next week, and said the central bank could cut rates by as much as 100bp in an effort to stimulate the ailing economy. Discuss the topic and your trade ideas in the EUR/USD Forum.
