[U][B]Fundamental Headlines[/B][/U]
• [B]GBPUSD – [/B]The Chartered Institute of Purchasing and Supply’s index of manufacturing dropped to 44.3, its lowest reading since 1998. July’s contraction was the largest in a decade, with inflation at is strongest point since 1999. The index’s decline was inflamed by reports showing that U.K. housing prices slumped to their lowest level since 1991. The Bank of England faces a precarious situation, as inflation continues to rise while growth slows. Discuss this and your trade ideas in the GBP/USD Forum.
• [B]EURUSD – [/B]German retail sales fell almost three times more than anticipated in June, post a 1.4 percent decline. A Bloomberg News survey forecasted a drop of 0.5 percent in June, after a 0.5 percent rise in May. Europe’s largest economy initially deflected economic problems, caused by the U.S. housing slump, but now faces record inflation and a highly inflated euro. Activity is expected to continue to soften in the second half of the year. For more news and resources, visit our EUR/USD Forum.
• [B]AUDUSD – [/B]With interest rates holding at a 12-year high, Australian production slowed and unemployment rose in July. Australia’s Performance of Manufacturing Index dropped 0.1 points to 46.9 from June, when it shrunk by 4.2 points. The index reading below 50 indicates a contraction in the manufacturing sector, with no signs of relent. Manufacturing could continue to cool, after retail sales declined by 1.0 percent, the most in six years. For more news and resources, visit our Australian Dollar Currency Room.
• [I]Wal-Mart Warns of Democratic Win /I – Wall Street Journal
• [I] Treasury Ex-Official is at Center of UBS Probe /I – Wall Street Journal
• [I]Oil Group Ends Iran investments[/I] (link) – Financial Times
• [I]GM Posts $15.5 Billion loss on Lease Costs, U.S. Sales Slump /I](Bloomberg - Are you a robot?)– Bloomberg
• [I] IndyMac Bancorp Files for Bankruptcy After Seizure[/I] (link) – Bloomberg
