Will Talk of $200 a Barrel Dampen Growth?

Fundamental Headlines

•    GBPUSD  – U.K. factory production contracted to its lowest level in eight months, falling by 0.5 percent in May. The decline, seen as a surprise, comes after no change in production in April. While rising commodity prices and slowing economic growth continue to have a stranglehold on the industrial sector, Bank of England policy makers discuss raising interest rates, though unlikely for this week. Recessionary risks continue to press on the economy, as service industries contract at their fastest pace since 2001. Discuss the topic and your trade ideas in the GBP/USD Forum.
•    AUDUSD  –  Australia’s AiG construction index shrunk for the fourth straight month in June. Although the index improved to 40.3 points in June from 36.9 points in May, the reading below 50.0 points indicates the economy is still indeed slowing. Lending rates, which remain atop a 12-year high, have reduced demand for new housing and factory production. The decrease in construction will weigh down on a cooling economy that grew at its slowest pace in two years in the first quarter. For more news and resources, visit our Australian Dollar Currency Room.
•    USDCHF  – The Swiss jobless rate remained unchanged at 2.5 percent in June, as companies were forced to broaden capability to meet demand from emerging markets. Output was stepped up as manufacturers bolstered their workforces, mainly due to an increase in orders from China and India. The jobless rate should rise in the second half of the year, as economic indicators and inflationary fears point towards a cool down. For more news and resources, visit our Swiss Franc Currency Room.

•    Oil’s Rapid Rise Stirs Talk of $200 a Barrel This Year (link) – Wall Street Journal
•    Beijing Sets Focus on Inflation Fight and Exports (link) – Wall Street Journal
•    InBev Seeks to Replace Anheuser Board (link) – Financial Times
•    Fresenius Agrees to Buy APP for Up to $4.6 Billion (link) – Bloomberg
•    Bernanke’s Emerging-Market Disciples May Heed Volcker (link) – Bloomberg