Fundamental Headlines
• USDJPY – Japanese fell 2% in June following a 2.8% increase the month prior. Orders from abroad fell for the first time in four years as a global slowdown has dampened demand. Meanwhile, small business confidence fell for a fourth month in July to 39.9-the lowest level in six years. This could spell trouble for the already declining labor market as the sector employs 60% of Japanese workers. Discuss this and your trade ideas in the USD/JPY Forum.
• USDCHF – The Swiss leading economic indicator fell to 0.90 from a revised lower 0.99 the month prior-the lowest in five tears, as rising costs and a global slowdown continue to weigh on manufacturers. Despite the improvement in the UBS consumption gauge fears have grown that the slowdown is starting to weigh on domestic demand. For more news and resources, visit our Swiss Franc Currency Room.
• GBPUSD – The European retail PMI measurement rose to 46 from 44, but remains at a contraction level as rising inflation saps shoppers purchasing power. Indeed, the consumer confidence indicator fell to -20 from -17, while the economic outlook gauge slipped to 89.5-the lowest level since October 2001. The slowdown in the region may keep the ECB at next week’s policy meeting. The MPC is trying to battle rising inflation as they adhere to its price stability mandate, but countries experiencing a slowdown like Italy are demanding help and may consider leaving the economic union. For more news and resources, visit our GBP/USD Forum.
• Lone Star’s Splash (link) – Wall Street Journal
• Home Prices in May Took a Steep Fall (link) – Wall Street Journal
• SEC Extends Emergency Order on Short-Selling (link) – Financial Times
• Deutsche Bank Faces Pressure to Expand Consumer Unit (link) – Bloomberg
• World Trade May Expand Even as WTO Talks Sputter (link) – Bloomberg
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