Forex News: U.K. Housing Declines Further, IMF Cuts Global Forecast

Fundamental Headlines• GBPUSD – The U.K. housing market continues to deteriorate, as mortgage approvals fell to 73,000, near their lowest level in nine years. Falling home prices have also led to homeowners withdrawing less equity from their homes to purchase cars and vacations, which will weigh on future growth. The tight credit markets have seen banks hold onto to cash despite the BoE’s recent rates cuts. The lack of liquidity is stalling the housing market and preventing business from getting the capital they need for projects. This has adversity affected construction which saw activity contract for the first time in six years. Speculation has increased that the BoE will need to cut rates at their next meeting by 50points to give banks an incentive to lend. Discuss the topic and your trade ideas in the GBP/USD Forum.• EURUSD – European factory gate prices rose 0.6% as expected pulling the year over year increase to 5.3%. Record oil prices and increasing demand fro commodities have exacted price pressures throughout out the production process. Inflation in the region has accelerated to its fastest pace in 16 years, with the recent CPI estimate measuring at 3.5%. The runaway inflation has prevented the ECB from cutting rates in an effort to stem the slowing growth in the region. Many expect that the central bank will need to cut rates in the near term as the contraction in the U.S. spreads through out the global economy. Discuss the topic and your trade ideas in the EUR/USD Forum.