Fundamental Headlines • Hedge Fund Selling Puts New Stress on Market – Wall Street Journal • Airbus Expects Decline in Jet Orders – Wall Street Journal • US retailers battered by financial turmoil – Financial Times • Zero Rate World May Lie Ahead as King, Trichet Cut – Bloomberg • Ford Posts $2.98 Billion Operating Loss on Tumbling U.S. Sales – Bloomberg • USDCAD – Employment opportunities in Canada improved as the economy added 9.5K jobs in October despite expectations for a 10K decline. Growth prospects for the domestic economy remains favorable as the number of jobs increased for the third consecutive month, but fading demands from the U.S. could drag on the economy over the coming months as they consume nearly 80% of Canadian exports. Meanwhile, the unemployment rate ticked higher to 6.2% from 6.1% as increasing number of individuals joined the labor force. Discuss the topic and your trade ideas in the USD/CAD Forum. • EURUSD – Germany’s trade balance widened to 15.0B from 10.6B in August due to an unexpected surge in foreign demands. Exports increased 0.7% after falling 0.3% in the previous month, which was slightly stronger than the 0.6% gain projected by economists. Despite the surprising improvement in trade conditions, fears of a global recession paired with the lack of stability in the financial market is expected to drag on export demands over the coming months. Meanwhile, industrial production fell 3.6% in September, followed by a 2.1% decline from the previous year. A breakdown of the report showed that all of the components fell lower during the month, indicating that economic activity is slowing at a faster pace than initially expected by the ECB. The data suggests that Germany, Europe’s largest economy, may have slipped into a technical recession in the third quarter, which could lead the President Trichet to ease policy further over the coming months to avoid a severe downturn in the economy. Discuss the topic and your trade ideas in the EUR/USD Forum. • USDCHF – The seasonally adjusted unemployment rate for Switzerland continued to hold steady at 2.6% in October, while the headline reading inched higher to 2.5% from 2.4% in September. The data continues to reflect a dimmed outlook for the Swiss economy, and conditions are expected to only get worse as the Swiss National Bank noted that the economy might contract in 2009 after unexpectedly lowering the 3-month LIBOR target rate by 50bp. For more news and resources, visit the new Swiss franc Currency Room.