Fundamental Headlines
• GBPUSD – The BoE left their benchmark interest rate unchanged at 5.00% as expected. The housing market continues to deteriorate as HBOS reported prices fell another 2% in June. The housing slump and tight credit markets are dragging the country toward recession, making it prohibitive for the MPC to raise rates to battle inflation. Indeed, rising oil and food prices has seen the country’s inflation rate rise to 3.3% exceeding the 3% threshold. Discuss the topic and your trade ideas in the GBP/USD Forum.
• USDJPY – Japan’s domestic corporate goods price index rose to a 27 year high of 5.6% in June, exceeding expectations of 5.3%. Rising commodity prices are forcing Japanese companies to pass on costs to consumers. The BoJ finds itself caught between slowing growth and rising prices, which may lead them to keep their benchmark interest rate unchanged throughout the remainder of the year. Discuss the topic and your trade ideas in the USD/JPY Forum.
• AUDUSD – Australian employers hired 29,800 workers in June, which was nearly three times the 10,000 that economist forecasted. Chinese demand for commodities led to companies like Rio Tinto to increase hiring, which led to a rebound from the May’s decline of 25,600. The economy’s robust growth has increase expectations that the RBA will raise rates at its next policy meeting. For more news and resources, visit our Australian Dollar Currency Room.
• Overhaul of Financial Regulations Gaines Momentum (link) – Wall Street Journal
• U.S. Consumers Trade Down as Economic Angst Grows (link) – Wall Street Journal
• Crédit Mutuel Buys Citi German Units for €4.9bn (link) – Financial Times
• GE Says Second-Quarter Profit Fell 3.9%, Matching Estimates(link) – Bloomberg
• Crude Oil Rises on Concern About Brazilian, Nigerian Supplies (link) – Bloomberg
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