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AUDUSD – Australian business confidence held at the lowest place in seven years at -9, as the highest interest rates in 12 years weighed on consumers spending. Company profits are declining as consumers are faced with record energy and food prices. The RBA is facing more pressure to cut borrowing fees as expectations for economic growth were cut to 2% comparing 4.3% in2007.
EURUSD – The French account deficit widened to a record high -4.4 billion as a strong Euro led to decreased demand for exports. Meanwhile, French inflation remained unchanged at 3.6% as oil and commodity prices went down. If price pressures abate throughout EU, it may give the ECB room to lower their benchmark interest rate.
GBPUSD – Inflation in the United Kingdom rose to 4.4% from 3.8% on an annualized basis and more than double the central bank’s 2% target, supporting BoE Governor King’s contention that prices will remain above 4% for the foreseeable future. Expectations are that the country’s slowing growth will drag down prices and ultimately allow the BoE to cut rates as they try and disallow the economy from slipping into a recession.
06:02
Posted on Aug-13-2008
