U.K. GDP Falls; ECB Liebscher Says Room For Rate Hike
• GBPUSD – U.K. economic growth slowed to 1.6% year-over-year from 2.3% in the first quarter, which was the slowest pace since 2001. Gross domestic product rose 0.2% in the three months through June, as the housing slump and fall out from the subprime crisis saw construction, manufacturing and financial services fall. The economy is steadily approaching a recession as overall production fell 0.5% in the second quarter. Slow growth and rising inflation is expected to leave the BoE on Hold. Discuss the topic and your trade ideas in the GBP/USD Forum.
• EURUSD – German import prices rose 8.9% in June on the back of higher energy costs. It was the fastest pace in more than seven years and surpassed economist predictions of 8.4%. Meanwhile, the M3 money supply in July fell to 9.5% from 10.4% due to slowing growth. As growth declines the ECB will be hard pressed to raise rate sfurther. Discuss the topic and your trade ideas in the EUR/USD Forum.
• USDJPY– Japanese inflation rose to 2.0% in May after a 1.3% increase the month prior, on soaring gas and food prices. The higher costs are curbing consumer and business spending is impacting growth. Although prices are near the higher end of the BoJ’s target band, the central bank will most likely leave rates unchanged as the country heads towards a recession. Discuss the topic and your trade ideas in the USD/JPY Forum.
• Amid Turmoil, U.S. Turns Away from Decades of Deregulation (link) – Wall Street Journal
• Banks Sink Regional Stocks (link) – Wall Street Journal
• Dutch Fund Charged Over Oil Price Abuse (link) – Financial Times
• Munich Re Drops Most in Five Years After Cutting 2008 Forecast (link) – Bloomberg
• Liebscher Says ECB Has Room to Raise Interest Rates (link) – Bloomberg