Fundamental Headlines
• USDJPY – Japanese retail sales rose 1.1 percent in March from a year earlier. The gain was a result of rising gasoline and food prices which have led to inflation accelerating to its fastest pace in a decade. Consumers are seeing their purchasing power diminish, which has started to curb their spending. Domestic growth has been strong to this point which has offset the decline in the U.S. Despite the domestic slowdown, the BoJ continues to leave their benchmark rate unchanged as demand from emerging markets has remained strong, allowing them to focus on inflation. For more news and resources, visit our Japanese Yen Currency Room.
• EURUSD – German consumer confidence unexpectedly rose to 5.9 from 4.8 in April. The level of optimism rose to an seven month high, as a strong labor market and rising wages have offset the concerns of rising inflation and slowing growth. Meanwhile, President Trichet spoke in Vienna , where he reaffirmed the ECB;’s commitment to price stability, and said that the current interest rate level would achieve that that goal. This will erase the recent speculation that the MPC was considering a rate hike in the face of record oil and food prices. Discuss the topic and your trade ideas in the EUR/USD Forum.
• Mars, Buffet Team Up In Wrigley Bid (link) – Wall Street Journal
• Continental Rejects Merger Overtures (link) – Wall Street Journal
• Investors Pull Out Of Mutual Funds (link) – Financial Times
• Oil Rises To Record On U.K. Pipeline Shutdown, Nigerian Attack (link) – Bloomberg
• Dollar Slide Drives Budget As Japan Shuns Treasuries (link) – Bloomberg
