Canadian CPI fell to 0.1% from 0.4% on an annualized basis, on the back of a 0.7% gain in May. Economist were expecting the yearly rate to fall to -0.2% which would have cleared the way for the BoC to embark on quantitative easing measures.
Fundamental Headlines
• NYSE Plans New Venue for Derivatives – Wall Street Journal
• Surprise drop in retail sales hits pound – Financial Times
• World Bank raises China GDP forecast – Financial Times
• European Stocks Fall in Longest Losing Streak Since January; Pound Weakens – Bloomberg
• Britain Opposes EU Financial-Oversight Plans, Insists on National Control – Bloomberg
USDCAD – Canadian CPI fell to 0.1% from 0.4% on an annualized basis, on the back of a 0.7% gain in May. Economist were expecting the yearly rate to fall to -0.2% which would have cleared the way for the BoC to embark on quantitative easing measures. The central bank has outlined a plan of action for such efforts but is monitoring inflation to determine when if at all to initiate it. A 2.7% jump in transportations costs led to the unexpected rise in costs followed by gains in recreation and alcohol of 1.4% and 1.2% respectively. Discuss the topic and your trade ideas in the USD/CAD Forum.
GBPUSD – U.K. retail sales unexpectedly fell by 0.6% in May as a 1.9% drop in apparel sales led a pull back in spending for the first time in three months. Non-specialized stores saw a reversal of fortunes as sales dropped 1.8% after a 3.5% gain in April. Meanwhile, Public Sector borrowing rose by 19.9 billion which was the most since record keeping began in 1993 and a sign that credit markets are thawing. The easier access to funds could spur future demand and lead to a pick up in consumption in the coming months. Discuss the topic and your trade ideas in the GBP/USD Forum.
