Fundamental Headlines
• USDJPY – Japan’s fourth quarter growth beat estimates as GDP printed at 3.5% versus 2.3%. Emerging economies have maintained their appetite for Japanese exports, accounting for half of the demand, and offsetting a domestic housing slump and U.S. downturn. Thus, supporting the BoJ’s argument of sustained growth and corresponding rate hikes. Conversely, consumer confidence fell to a 5 year low of 36.1, which should bring out more proponents for a rate cut and put pressure on a leaderless central bank. For more news and resources please visit our Yen Currency Room.
• USDCHF – Swiss investor confidence fell sharply to minus 71.7 from minus 55.6 the month prior. Companies are paring back their growth outlooks as they factor in a U.S. recession. Therefore, expect the SNB to keep rates unchanged at tomorrow’s policy meeting, despite rising inflation concerns.
• GBPUSD – A weakening pound made British exports more attractive and led to the trade deficit narrowing to 7.5 billion in January, as a 6.3% increase in exports offset a 19 month high in imports. However, inflation concerns were intensified as import prices rose 2.5% and a surprising 2.2% ex oil, furthering the case for the BoE’s hawkish stance. Discuss the topic and your trade ideas in the GBP/USD Forum.
• EURUSD –European industrial output more than doubled expectations rising 0.9%. Capital and durable goods reversed trend and jumped 2.7% and 1.9% respectively. Meanwhile, France’s inflation remained at a 12-year high on rising energy and food costs. Inflation will remain a concern for the ECB as oil daily continues to make new highs . new. Discuss the topic and your trade ideas in the EUR/USD Forum.
• Fed Sparks Wall St Rally (link) – Wall Street Journal
• Obama Wins in Mississippi (link)– Wall Street Journal
• Upper House Rejects Fukui Successor (link) – Financial Times
• Dollar Declines On Speculation Fed Package Won’t Succed (link) – Bloomberg
• China Retail Sales Grew At Fastest Pace Since 1999 (link) – Bloomberg
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