Fundamental Headlines
• Goldman, Morgan Scrap Wall Street Model, Become Banks in Bid to Ride Out Crisis – Wall Street Journal
• Short-Sale Ban Spreads Around Globe – Wall Street Journal
• Dollar slips amid US fiscal worries – Financial Times
• New York Loses More Jobs, London Homes Drop in Race for Bottom – Bloomberg
• Dollar May Get `Crushed' as Traders Weigh Up Bailout – Bloomberg
• GBPUSD – The Rightmove house price index declined for the fourth consecutive month, falling 3.3% from last year.
Declining home values paired with tightening credit conditions have certainly taken a toll on Europe’s second largest economy, and conditions may only get worse as the U.K. is on the brink of a recession. Market turmoil has clearly intensified in the credit sector as HBOS, the biggest mortgage lender in the U.K., has been taken over by TSB Lloyds last week. Meanwhile, the BoE quarterly bulletin stated that the central bank expects the downturn in the global economy to worsen over the coming months, and said that ongoing credit crunch may last until 2010. For more news and resources, visit our GBP/USD Forum.
• USDJPY – The all industry activity index increased to 0.8% from -0.9% in June due to an improved reading in the tertiary and construction index. Meanwhile, supermarket sales fell 1.0% in August, signaling that Japanese consumers may continue to cutback on spending has they face higher living costs. Furthermore, convenience store sales slipped to 5.3% from a record high reading of 11.7% in July, which suggests that spending conditions may remain subdued for the rest of the year. Discuss the topic and your trade ideas in the USD/JPY Forum.
Related Articles:
Forex Trading Weekly Forecast - 09.22.08
Euro/US Dollar Rallies on Jump in Investor Confidence - Will the Move Continue?
Euro, Pound And Yen Drop As U.S. Plans To Create Entity To Purchase Troubled Assets
