Fundamental Headlines
• U.S. to Put Tariff on Chinese Tires– Wall Street Journal
• EU Economy to Return to Growth – Wall Street Journal
• US tyre duties spark China clash – Financial Times
• U.K. Banks to Post Further $215 Billion Loss on Weak Economy, Moody's Says – Bloomberg
• Russia Cuts Key Interest Rate to 10.5% After Record Economic Contraction -Bloomberg
USDCHF– Swiss producer and import prices fell in August by 5.5% from a year ago after dropping 6.1% the month prior. A 5.6% rise in petroleum products during the month led to the rise as we have started to see energy prices stabilize which could be setting the stage for future inflation. This could lead the Swiss National Bank softening ion their intervention stance as deflation concerns disappear. Nevertheless, the county’s dependence on exports makes it critical that exchange rates remain near current levels or the country’s recovery could be jeopardized. Fpr more news and information visit the USD/CHF currency room.
EURUSD – Euro-zone industrial production in July declined by 0.3% in July surpassing estimates of a 0.2% drop. However, June’s 0.6% fall was revised higher to -0.2% creating a net 0.2% gain. Regardless, activity remains weak and although the economy continues to see signs of improvement, it remains far from generating sustainable growth. A separate report showed that employment rolls shrunk by another 5.0% in the second quarter for the region following a 0.7% drop in the first three months of the year. Weak employment and depressed levels of activity may lead to a protracted recovery for the economic region. Discuss the topic and your trade ideas in the EUR/USD Forum.
