[B]Fundamental Headlines[/B]
• [B]USDJPY [/B]– April’s Eco Watchers Survey fell for the first time in three months to 36.1 from 36.9 the month prior. Japanese Merchants are losing confidence as they watch rising inflation limit consumers spending power. Household spending has declined at the fastest pace in 15 years. For more news and resources, visit our Japanese Currency Room.
• [B]AUDUSD [/B]– Australian business confidence fell in April to -8 from -4 the month prior. 12 year high interest rates and the headwinds from a global slowdown and rising inflation have sunk confidence to its lowest levels since post 9/11. The RBA will be reluctant to change interest rates until inflation wanes or the downside risks to growth become to formidable to ignore.
• [B]GBPUSD [/B]– U.K. producer prices rose at the fastest pace since records began in 1986. Prices at the factory gate rose 7.5% from a year earlier, on the back of a 1.4% increase in April. The much stronger than the expected 6.4% price appreciation, has reduced the chances the BoE will cut rates at their next meeting. Discuss the topic and your trade ideas in the GBP/USD Forum.
• [I] Large Quake Rattles Central China[/I] (link) – Wall Street Journal
• [I] AIG Leasing Unit Mulls Split-Up [/I] (link) – Wall Street Journal
• [I]HSBS Sees Further Pain in US Housing [/I] (link) – Financial Times
• [I]China Bulls Accelerate; Bank Reserve Requirements Rises[/I] (link) – Bloomberg
• [I]Dollar Bulls Gain Control as Euro May Be Near Peak /I – Bloomberg
