Fundamental Headlines • Morgan Stanley in Talks With Wachovia – Wall Street Journal • WaMu's Rescue Effort Gets a Boost – Wall Street Journal • Lloyds TSB seals £12bn HBOS rescue – Financial Times • Fed, ECB, Bank of Japan Lead Global Plan to Pump $180 Billion Into Markets – Bloomberg • SEC May Require Disclosure of Hedge Funds' Short-Sale Positions – Bloomberg • GBPUSD – U.K. retail sales unexpectedly improved for a second month as Britons increased purchases of clothing and footwear, lured by increased discounts. The 1.2% improvement was more than the-0.5% that was expected by economist. Despite the increase in domestic growth the economy appears headed for a recession dragged down by a housing slump and tight credit markets, Indeed, rumors that the BoE would call for an emergency rate cut swirled but were later refuted. Although a near term reduction isn’t expected that central bank may need to ease rates in early 2009. Discuss the topic and your trade ideas in the GBP/USD Forum. • USDJPY – Department stores sales fell 4.1% in August which marked the sixth straight month of declines. Apparel sales fell 7.5% as shoppers are continuing to feel the effects of recent price pressures. Although oil prices have eased the effects of their record setting rise and still filtering throughout the economy. Although, the Japanese economy is headed for a recession, expectations are that the BoJ will keep their benchmark rate at 0.5% as there is little room to maneuver. Discuss the topic and your trade ideas in the USD/JPY Forum. • USDCHF – The Swiss trade balance narrowed to 1.43 billion francs as exports of chesses, watches and chocolate increase. Demand from oil rich nations help offset slowing demand from Europe and the U.S.. However, economist were expecting the deficit to shrink to 1.03 billion which signals that demand continues to remain soft. For more news and resources visit our Swiss Franc Currency Room.
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