Fundamental Headlines • U.S. Weighs Purchasing Stakes in More Firms – Wall Street Journal • U.S. Auto Sales Plunged in October – Wall Street Journal • Goldman fund loses $990m after 10 months – Financial Times • Landsbanki Bond Auction Gives Initial Value of 3.375% – Bloomberg • BMW Stock Rises as Chief Forecasts `Clearly Positive' Earnings – Bloomberg • EURUSD – The Euro-Zone producer price index fell for the third consecutive month to 7.9% from 8.5% in August, which crossed the wires slightly weaker than the 8.0% estimate projected by economists. The sharp pullback in oil prices have certainly helped to ease price pressures throughout the 15 European countries, which should allow the European Central Bank to hold their dovish outlook going forward. The ECB is widely expected to lower the benchmark interest rate this week by 50bp to 3.25%, and may look to ease policy further over the coming months as the economy teeters on the brink of a recession. Discuss the topic and your trade ideas in the EUR/USD Forum. • GBPUSD – Building activity in the U.K. reached its lowest level since recordkeeping began in 1997 as the construction PMI index slipped to 35.1 from 38.8 in September. The release crossed the wires much weaker than the 37.8 estimate anticipated by economists, which indicates that economic activity is slowing at a faster pace than initially expected. The lack of recovery housing sector paired with mounting turmoil in the credit market suggests that conditions may only get worse over the coming months as Europe’s second largest economy heads into a recession. Despite the increased efforts by the Bank of England to stave off further downturns in the economy, the central bank is expected to lower borrowing costs by 50bp this week, and could be forced to ease policy further in order to avoid a severe downturn in the economy. Discuss the topic and your trade ideas in the GBP/USD Forum. • USDCHF – The consumer price index in Switzerland slipped to 2.6% from 2.9% in September on the back of falling oil prices. The release however, was slightly stronger than the 2.5% estimate projected by economists, but should fall lower over the coming months as commodity prices continue to pull back from their record highs. Easing price pressures will certainly help the SNB to focus on the downside risks to growth, and leaves the door open for further easing to follow as fears of a global recession intensify. For more news and resources, visit the new Swiss franc Currency Room. Related Articles: Euro Rally's As Risk Appetite Increases, Despite Declining Interest Rate Outlook Forex Trading Weekly Forecast - 11.03.08