Fundamental Headlines • USDJPY – Japanese business sentiment declined at its quickest pace in four years to minus 15.2 percent, amid elevated commodity costs and decreased demand for Japanese goods. The Nikkei 225 Stock Average also plummeted as confidence amongst manufacturers was at its lowest lever of all time. Discuss the topic and your trade ideas in the USD/JPY Forum. • GBPUSD – U.K. house prices dropped 1.2 percent, the biggest decline this year. Banks have failed to loosed their lending standards, which continues to weigh on the market. HBOS Plc, Britain’s largest mortgage lender, speculates that house prices will continue to fall to around 9.0 percent for the year. For more news and resources, visit our British Pound Currency Room. • EURUSD – The IFO institute survey of 7,000 executives showed that rising oil prices and the prospect of an ECB rate hike has greatly dimmed the outlook for German businesses. The survey declined to 101.3 from 103.5 in May. Meanwhile, Europe’s manufacturing and service industries contracted sending the PMI composite reading down to 49.5 from 51.1. The ECB is expected to increase rates in the near-term as they stick to their mandate of price stability. However, the slowing growth in the region may prevent the central bank from embarking on a series of rate hikes. Discuss the topic and your trade ideas in the EUR/USD Forum. • Panel Cites Surge in Speculative Oil Trades (link) – Wall Street Journal • Capital Flow from Emerging Nations to US Poses Some Risks (link) – Wall Street Journal • Eurozone Indicators Raise Stagflation Fears (link) – Financial Times • German Business Confidence Declines to Two-Year Low (link) – Bloomberg • Citigroup Readies More Job Cuts Under Pandit’s Plan (link) – Bloomberg