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Forex News: Dow, S&P Futures Point To Major Declines On Tuesday - Is The Dollar Next?
Tuesday, 22 January 2008 11:31:28 GMT  |  Terri Belkas and John Rivera, Currency Analysts
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Fundamental Headlines

·    USDJPY –The BoJ left rates unchanged at 0.50% despite the deteriorating Japanese and Global economies. Governor Fukui stated that although the short term picture is bleaker than expected, by April he expects the economy to be back in line with their long-term forecasts. He didn’t see a need for them to rush into any long-term policy decisions until they could better asses all the risk factors. Japanese Supermarkets printed -1.8% lower for the 24th straight month showing further signs of a slowing Japanese economy.- For more resources, visit the new Yen Currency Room.
·    USDCHF –Swiss retail sales rose 2.9% in November up from 2.2% from the previous month. Although the number was weaker than the 4.0% that was expected, it still shows robust consumption. The strong labor market should continue feeding consumption, which should support the economy. For more resources, visit the new Swiss Currency Room.
·    GBPUSD –UK manufacturers showed that they are resilient despite the pessimistic outlook that has been prevalent the past few months. The CBI Industrial trends report showed that total orders for January remained unchanged from December at +2. Additionally, it showed signs of continued demand as +11 of the balance of manufacturers reported increasing orders. Discuss the BOE in the GBP/USD Forum or visit our recently updated British Pound Currency Room for specific resources geared towards Sterling.

 •    Asia Stocks Fall, Extending Global Slump as Bear Market Spreads (link) – Bloomberg
•    U.S. Stock Futures Tumble, Point to Biggest Drop Since 2002 (link) – Bloomberg
•    Long Period Of Rising Food Prices Forecast (link) – Financial Times
•    Commodity Prices Extend Losses (link) – Financial Times
•    BOJ Keeps Key Rate at 0.5%, Says Growth Is Slower (link) – Bloomberg

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