Weak German Retail Sales Could Lead ECB to Add Measures

[B]Fundamental Headlines[/B]

[I]• China Tests U.S. Lead in Manufacturing – Wall Street Journal
• Dubai Real Estate Down 50% From Peak – Wall Street Journal
• Wall Street profits from trades with Fed – Financial Times
• Bailout Banks Buying Treasuries Help Keep Rates Low With Growing Deposits – Bloomberg
• Roubini Says Commodity Prices May Rise in 2010 as Global Recession Abates – Bloomberg[/I]

[B]EURUSD[/B] – German retail sales unexpectedly fell by 1.8% in June as consumer continued to tighten purse strings as concerns rose that an economic recovery would be protracted. Economist were expecting a 0.3% gain on increasing optimism and a stabilizing economy. The drop in consumption demonstrates that weakness remains. However, the final reading for July’s Euro-Zone PMI manufacturing gauge was revised higher to 46.3 from 46.0. The ECB is expected to stand pat at their policy meeting this Thursday as they try and asses the impact of their covered bond purchase program. Discuss the topic and your trade ideas in the EUR/USD Forum.
GBPUSD[/B] – The U.K. PMI manufacturing reading for July showed the sector expanded for the first time since March,2008 as it rose to 50.8 beating early forecasts of 47.8. The month prior reading was also revised higher to 47.4 from 47.0 indicating that the economy is improving at a faster than expected pace. This could lead to the BoE refraining from adding to their quantitative easing efforts at their Thursday policy meeting. Discuss the topic and your trade ideas in the GBP/USD Forum.