Declining German Exports and Industrial Production Cast Doubts On Recovery

Published June 9th, 2009 - 04:06 GMT
Al Bawaba
Al Bawaba



Fundamental Headlines

Credit-Card Delinquencies Increase – Wall Street Journal
Supreme Court delays Chrysler sale– Financial Times
Paris and Berlin plan reforms push– Financial Times
JPMorgan Is Among 10 Banks U.S. Will Let Repay TARP in Show of Confidence – Bloomberg
BlackRock Said to Offer Cash, Stock for Barclays Unit – Bloomberg

EURUSD – The German trade balance report showed that exports plunged by 4.8% as the economy continues to be impacted by slumping global demand. The surplus for the country shrunk from 11.3 billion to 9.4 bilion despite imports falling by 5.8%. Meanwhile, German industrial production unexpectedly dropped by 1.9% in April as capiotal goods fell by 6.4%. ECB rhetoric has left the door open for more easing from the central bank as they continue to refrain from confirming that a floor has been put in place. Discuss the topic and your trade ideas in the EUR/USD Forum.

GBPUSD –  The RICS house price index improved from -58.7% to -44.1% which was the highest reading since November, 2007. A similar rise in the DCLG house price indicator from -13.6% to -13% bolstered the case that the sector is stabilizing which had been mired in its worst downturn since the Great Depression. However, BoE member Tucker cautioned that despite early signs of a recovery it reamisn highly uncertain. Discuss the topic and your trade ideas in the GBP/USD Forum.