• Consumer Credit Fell Again in May – Wall Street Journal
• IMF Boosts '10 Economic Outlook – Wall Street Journal
• Financial power to shift to the east– Financial Times
• Stocks, Metals Rise in Europe on China Car Sales, Alcoa Results; Yen Falls – Bloomberg
• G-8 Says Global Economic Recovery Is Too Weak to Withdraw Stimulus Effort – Bloomberg
EURUSD – The German Trade Balance surplus unexpectedly widened in June to 9.6B from 9.4B as imports fell 2.1% outpacing a small gain in exports. Final German CPI figures for May showed inflation at 0.1% which is on the verge of following the regional reading into negative territory. Meanwhile, the ECB monthly report stated that current interest rates are appropriate and that economic risk remained balanced. The central has also pledged to keep interest rates near 2% which could raise interest rate expectations. Discuss the topic and your trade ideas in the EUR/USD Forum.
GBPUSD – The Bank of England left their benchmark rate unchanged at 0.50% as expected, but in an unusual statement following the non-action said that they would leave their asset purchase program at £125 billion. The central bank will review their quantitative easing efforts at their August policy meeting when they will release their quarterly inflation report. The MPC has maintained that inflation which stands at 2.2% will fall and remain below its 2% target for the remainder of the year. Meanwhile, the U.K. Visible trade balance showed that the deficit narrowed to -£6263 from -£7137 as imports declined raising concerns over domestic growth. If downside risk increase for growth increase then the BoE may be forced to extend their QE measures. Discuss the topic and your trade ideas in the GBP/USD Forum