[B]Fundamental Headlines[/B]
• [B]USDJPY [/B]– Japanese machine tool orders fell 8.9% in July from a year earlier, as manufacturers saw declines domestically and from abroad. The measurement is a strong indicator for future economic activity in the country, which is now heading towards a recession. Indeed, the government acknowledged last week that the economy has started to contract. Discuss the topic and your trade ideas in the USD/JPY Forum.
• [B]EURUSD [/B]– German wholesale prices rose 9.9% in July from 8.9% the month prior, and exceeded the 9.0% that was expected. The data underlined the comments from ECB member Liecscher that the central bank is maintaining its focus on price stability. However, the -1.6% in French industrial production, showed the European economy is continuing to slow as the headwinds from the credit crisis take its toll. Therefore, expectations are that the MPC will leave rates unchanged for the remainder of the year. Discuss the topic and your trade ideas in theEUR/USD Forum.
• [B]GBPUSD [/B]– Factory gate prices in the U.K. rose 10.2% from 10.0% the month prior on an annualized basis - the fastest pace since 1986. As producers pass on increasing raw material costs inflationary pressure will increase. The BoE is already handcuffed with prices rising at 3.8% and expected to rise above 4.0% . However, as the country inches closer to a recession they may be forced to lower interest rate before the end of the year.
• [I]Economists Expect 2008’s Second Half to Be Worsen Than First[/I] (link) – Wall Street Journal
• [I]Pressure Grows for Big Changes at UBS After-Downs, Buyback, Tax Probe /I – Wall Street Journal
• [I]China to Overtake U.S as Largest Manufacturer /I – Financial Times
• [I]Dollar Gain Signals pain as Rally Prompts Exit From Bull Trade /I – Bloomberg
• [I]Economic Slump in U.S to Worsen as Consumers Get “Squeezed” After Rebates /I – Bloomberg
