Fundamental Headlines
• Options for Battling Crisis Narrow – Wall Street Journal
• Olympics Boost China's Retailers, But Manufacturing Growth Dented – Wall Street Journal
• Bank rally buoys Bourses – Financial Times
• Lehman's Fuld Races to Find Buyer as Fed, Treasury Help in Quest for Deal – Bloomberg
• Yen Declines as Gain in Stocks Spurs Demand for Carry Trades – Bloomberg
• EURUSD - Euro-Zone employment increased 0.2% in the second quarter, while the yearly figure slipped to 1.2% from 1.6%. The employment data crossed the wires weaker than expected, and suggests that unemployment will increase throughout the second half of 2008. Meanwhile, industrial production fell more than expected, slipping to -1.7% from the previous year. Furthermore, the previous figure was revised lower to -0.8% from an initial reading of -0.5%, signaling that the slowdown in global demands has clearly taken a toll on the European economy. Fading labor demands paired with sluggish production suggests that economic activity could slow further as Germany and Spain are on the brink of a recession. For more news and resources, visit our EUR/USD Forum.
• USDJPY – The Japanese economy contracted at its fastest pace in seven years, driven by a slump in domestic and foreign demands. Annualized GDP for the second quarter was revised lower to -3.0% from an initial reading of -2.4%. Meanwhile, the quarterly reading was ticked lower to -0.7% from -0.6%. Fading export demands has left the world’s second largest economy on the brink of a recession, while private-sector consumption may fall further as Japanese consumers deal with higher living costs. For more news and resources, visit the new Japanese Yen Currency Room.
To contact the author of this article, please email: dsong@fxcm.com
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