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Fundamental Headlines
• USDJPY – Japanese housing starts fell 19.2% in December marking the sixth straight month of double digit declines, as buyers continue to get tangled in stricter government policies. For more news and resources, visit the new Japanese Yen Currency Room.
• GBPUSD – The UK housing market continues to falter as prices fell 0.1%, according to Nationwide Building Society. A weakening economic outlook will continue to weigh on the sector, as prices are expected to fall another 5% this year, adding to the BoE’s worries as inflation risks climb and prevent them from cutting rates further. Should the BoE cut? Discuss the topic and your trade ideas in the GBP/USD Forum.
• EURUSD – The German unemployment rate fell sharply to 8.1% from 8.4%, as the unemployment level dropped by 89,000. However, robust labor markets haven’t translated into consumer spending, as retail sales slipped for the third straight month, pulling the annual rate to a nearly 10-year low of -6.9%. Meanwhile, European consumer, industrial, and services sector sentiment turned more pessimistic as inflation accelerated well above the ECB’s 2% ceiling at a rate of 3.2%, continuing the tug of war between inflationary concerns and an economic slowdown that has kept the ECB frozen in its tracks. Discuss this and other topics related to the Euro in our EUR/USD Forum.
• Fed Moves to Curb Recession Risk (link) – Wall Street Journal
• Bush Ties Trade Agenda to Faster Growth (link) – Wall Street Journal
• MBIA Posts Biggest Loss, Considers New Capital Plans (link) – Bloomberg
• Thain Says Bond Insurers Bail-Out Unlikely (link) – Financial Times
• European Confidence Declines, Inflation Accelerates (link) – Bloomberg
• U.K. Nationwide House Prices Fall for a Third Month (link) – Bloomberg
Podcast by Terri Belkas, Currency Analyst, Forex Capital Markets LLC, DailyFX.com
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