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Forex News (Podcast and Text): US Dollar Softens Ahead of PPI, Consumer Confidence; New Zealand Dollar Hits 26-Year High
Tuesday, 26 February 2008 12:09:37 GMT  |  Terri Belkas and John Rivera, Currency Analysts
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Fundamental Headlines


•    USDCHF –  The gauge for Swiss consumption improved in January spurred by a twenty percent increase in car sales. The index rose to 2.19 from a revised 2.18 in December, remaining above its long-term average of 1.5 for the 23rd month, and the highest reading in the January in seven years. A strong labor market and rising wages are propelling the economy and fueling optimism. The indicator which is based on car sales, retail sales and overnight hotel stays shows that consumer spending should remain strong throughout the remainder of the year. For more news and resources, visit the Swiss Franc Currency Room.
•    EURUSD – The German IFO survey of business confidence unexpectedly increased for the second straight month, increasing to 104.1 rising from a reading of 103.4 in January. Europe’s largest economy is showing resiliency despite a U.S. slowdown, record oil prices and a strong Euro. However, the gauge for expectations declined to 98.2 from 98.7, showing that there still remains downside risks to the economy . This data will strengthen  the ECB’s current hawkish stance and increase expectations that they will not cut rates until the latter part of the year. Discuss the topic and your trade ideas in the EUR/USD Forum.

•    U.S. Pushes Sovereign Funds to Open to Outside Scrutiny (link) – Wall Street Journal
•    U.S. Knew of Turkey’s Plan To Hit PKK, Didn’t Object  (link) – Wall Street Journal
•    Monolines Surge As Top Rating Secured (link) – Financial Times
•    Wheat Prices in Biggest One Day Rise  (link) – Financial Times
•    U.S. Home Foreclosures Jump 90% as Mortgages Reset (link) – Bloomberg
•    States Seek Congress’s Aid As Subprime Fallout Boosts Costs (link) – Bloomberg

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tb  Podcast by Terri Belkas, Currency Analyst, Forex Capital Markets LLC, DailyFX.com

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