Fundamental Headlines
• NZDUSD – Finance Minister Cullen comments that the New Zealand dollar is near the upper barrier of its trading range.• USDJPY – Japanese Finance Minister Omi has phone conference with US Treasury Secretary Paulson. Although agrees that markets have stabilized, the situation may not fully be resolved. • GBPUSD – Bank of England loans 314 million pounds in cash at penalty rate of 6.75 percent yesterday.• USDCHF – Swiss trade balance narrows to 1.57 billion from previous 1.65 billion.• EURUSD – Economic sentiment in Eurozone dips below the zero line, pessimistic for the month compared to the previous +7.2 reading. Although negative for the market, the euro was supported by a wider than expected trade balance.• China raises lending rate for the fourth time this year. Raise was widely expected by the market.
- Richard Lee, Currency Strategist