Fundamental Headlines

•    USDJPY – The Japanese leading economic index signaled a slowdown for the fifth straight month printing at 40.0%.  As a US slowdown weighs on the export dependent economy, manufacturers are planning to reduce production. Domestically the story isn’t any better as consumer confidence is deteriorating and will begin to impact consumer spending. The Japanese economy may be heading for a recession, which will make it difficult for the BoJ to raise interest rates anytime in the near future. For more news and resources, visit the new Japanese Yen Currency Room.

•    GBPUSD – According to the Nationwide Building Society, UK consumer confidence fell four points to the lowest since reporting began in 2004.  Consumers are feeling the effects of their sinking housing market, falling stock prices and a slowing economy. The BoE is expected to lower interest rates a quarter point tomorrow, but inflationary concerns create a risk that they will actually leave rates steady. Where do you think the Pound is headed? Discuss the topic and your trade ideas in the GBP/USD Forum.