[B]Fundamental Headlines[/B]
• [B]GBPUSD [/B]– U.K. mortgage approvals declined to their lowest level since May 1997, amid tighter lending criteria and economic pressure weighing down home owners. The housing slump deepened, as banks granted only 27,968 loans, down 56 percent from a year earlier, and down 20 percent from April. For more news and resources, visit our British Pound Currency Room.
• [B]USDCHF [/B]– Inflation cut into household spending, as the Swiss UBS Consumption indicator dropped to its lowest level in 17 months. The index declined to 1.91 last month, the lowest reading since December. Growth may slow in coming months as upside inflationary risks continue to undermine purchasing power and slow the labor market. For more news and resources, visit our Swiss Franc Currency Room.
• [B]EURUSD [/B]– The German GfK Consumer Confidence Index dropped to its lowest level in two years to 3.9. Economic growth in the euro region continues to deteriorate between the fastest inflation in 16 years and record-high commodity prices. Despite ECB President Trichet speculating that interest rates may have to be raised, the German government has said the economy will contract for the quarter. A highly appreciated Euro has eroded trade by dampening growth. Discuss the topic and your trade ideas in the EUR/USD Forum.
• [I] Rio Tinto and BHP Push the Cost of Iron Ore Higher /I – Wall Street Journal
• [I]NYSE Euronext Buys Stake in Qatar Stock Exchange /I – Wall Street Journal
• [I] Banks Seek More Changes to BCE Deal /I – Financial Times
• [I]BG Makes Hostile A$13.8 Billion Cash Offer for Origin[/I] (link) – Bloomberg
• [I] Bernanke Plays ‘Dangerous Game’ Balancing Rate Talk with Action[/I] (link) – Bloomberg
