Fundamental Headlines
• AUDUSD – The TD Securities Inflation Index jumped 4.8% from a year ago, and up from the month prior’s reading of 4.5%. A 25% increase in fuel cost and a 12% surge in housing rents were the main drivers. The continued acceleration of inflation away from the RBNZ’s target range of 2%-3% will most likely keep the central bank from changing interest rates at their policy meeting tomorrow. For more news and resources, visit our Australian Dollar Currency Room.
• GBPUSD – Consumer confidence in the U.K. in June fell five points to -34, the lowest level since the March 1990 riots. Meanwhile, May mortgage approvals fell to 42,000 from 58,000 - the lowest in at least nine years. The news will be unwelcomed by the BoE , which is already contending with inflation above its 3% threshold. The central bank may be forced to leave rates on hold for the near-term as they weigh the dual risks. Discuss the topic and your trade ideas in the GBP/USD Forum.
• EURUSD – The Euro-Zone CPI estimate rose to 4.0% from 3.7% in May- the highest in 16 years, underlying the ECB’s hawkish stance. Oil prices reaching over a $140 a barrel last week will continue to put upward pressure on prices, which may force the MPC to raise rates at their upcoming July 3rd meeting. Discuss the topic and your trade ideas in the EUR/USD Forum.
• Bank For International Settlements Sees Economy Near “Tipping Point” (link) – Wall Street Journal
• China’s Export Machine Threatened By Rising Costs (link) – Wall Street Journal
• Auction-rate Securities ‘Implied Support” (link) – Financial Times
• Commodities Signal Bubble Bursting As First-Half Ends (link) – Bloomberg
• Trichet Backs Inflation Hawks, Risking Weaker Growth (link) – Bloomberg
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