Forex News: European Retail Sales Falter, As U.S. Ills and Inflation Filter Throughout Global Economy.

Fundamental Headlines

• NZDUSD – New Zealand’s commodity price index rose to a record high, increasing 2% from February. Seven of the thirteen commodities measured rose bring the year to date increase to 27%. The increasing prices has been a source of growth for the commodity rich country, but fears are increasing that the bubble may burst bringing a halt to the country’s growth.
• GBPUSD – The U.K. services purchasing manger's index fell to 52.1 in March from 54.0 the month the prior, the lowest level in four months. Companies continue to watch their margins get squeezed, as they are unable to pass on rising input costs to consumers. Tight credit markets are also weighing on growth as banks have been reluctant to pass on the recent interest rate cuts, resulting in rising credit costs which are eating further into profits. Speculation continues to grow that the BoE will have to cut rates by 50 points to help lower credit costs. Discuss the topic and your trade ideas in the GBP/USD Forum.
• EURUSD – Retail sales in Europe unexpectedly fell 0.2% in February, led by a 3.1% decline in Germany. Rising inflation stoked by increasing energy and food costs have eroded consumer’s purchasing power, leading to food, drink and tobacco sales falling for a fourth straight month. The ECB has maintained their benchmark interest rate in an attempt to reign in inflation, but as the economy continues to suffer and consumer confidence wanes, the increasing downside risks may force them to consider cutting. Discuss the topic and your trade ideas in the EUR/USD Forum.