Fundamental Headlines
• OPEC Holds Output Quotas Steady – Wall Street Journal
• GM Taps Microsoft's Finance Chief - Wall Street Journal
• Stocks prepare for assault on year’s highs - Financial Times
• Greek Credit Rating Cut to A2 by Moody's; Bonds Rise on One-Step Downgrade -Bloomberg
• Dubai World Said to Present Standstill Deal on $22 Billion Debt in January -Bloomberg
USD/CHF – The Swiss trade balance surplus narrowed 2.14 billion from a revised 2.44 billion as exports fell on a nominal basis. However, demand from abroad rose on a seasonal adjusted basis rose 1.6% which outpaced a 0.6% rise in imports. The increase in exports could ease the Swiss National Bank’s concern over a strong franc’s impact on demand. The central bank has intervenes in the past to weaken the currency and with its current strength, policy makers may look to take additional measures.
GBP/USD – The final reading of U.K. GDP showed the economy shrank less than previously expected with a revision to -0.2% from -0.3%. Despite missing economist expectations for a improvement to -0.1%, the better growth figures supports forecasts for positive fourth quarter GDP. Indeed, the CBI raised their growth forecast for 2010 to 1.2% from 0.9%. However, their prediction for 2011 of 2.5% is significantly lower than the government’s 3.5% forecast. The rosier outlook from officials could lead to the BoE bringing an end to their asset purchase program. To discuss this and other ideas visit the GBP/USD forum.
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