Fundamental Headlines • Barclays Strikes Private Deal for $12 Billion Infusion – Wall Street Journal • Ford Lays Bet on New Truck By Rehiring 1,000 Workers – Wall Street Journal • AIG raises funds from new Fed facility – Financial Times • Mitsubishi UFJ, Mizuho Cut Forecasts as Bad-Loan Costs Swell – Bloomberg • Porsche's Volkswagen Stake Sparks Call for Disclosure – Bloomberg • EURUSD – Retail spending in Germany fell 2.3% in September as consumers continue to face higher living costs amid mounting fears of a recession. The sales reading crossed the wires much weaker than the 1.0% decline expected by economists, which suggests that ECB may lower the benchmark interest rate further as Europe’s largest economy teeters on the brink of a recession. In addition, the sales figure for August was revised down to 1.9% from 3.1%, indicating that private-sector consumption is falling at a faster pace than initially expected. On a brighter note, the CPI estimate for the Euro-Zone fell inline with expectations as the rate of inflation slipped to 3.2% from 3.6% in September. Easing prices pressures have spurred expectations that the European Central Bank will indeed deliver a rate cut at next week’s meeting, and has certainly raised prospects for further easing to follow over the coming months. Meanwhile, the unemployment rate held steady at 7.5% for the second consecutive month, but conditions may only get worse as fears of a global recession intensify. Discuss the topic and your trade ideas in the EUR/USD Forum. • GBPUSD – The GfK consumer confidence index slipped to -36 from -32 in September, but remains slightly above the record low reading of -42 in 1974. Falling home prices paired with fears of a global meltdown has certainly taken a toll on consumers, and conditions may only get worse as Europe’s second largest economy slips into a recession. The dour outlook for the U.K. has already raised expectations for a rate cut by the Bank of England next week, but the central bank could be forced to ease policy further over the coming months in order to stave off further downturns in the economy. Discuss the topic and your trade ideas in the GBP/USD Forum. • USDCHF – The Swiss KOF leading indicator slipped to its lowest level since 2003 as the index fell to 0.35 from a revised reading of 0.52 in September. The release was weaker than the 0.49 estimate projected by economists, indicating that the spillover effects of the credit crunch is certainly taking a toll on the economy. The downturn in the economy paired with fading growth prospects throughout Europe has pushed investors to raise bets that the Swiss national Bank will lower borrowing costs further as the major economies of the world head into a recession. Discuss the topic and your trade ideas in the Swiss franc Currency Room.