Europe Slowdown Continues As Retail Sales And Consumer Confidence Fall, Can The ECB Hike Again?

Daily Forex Fundamentals | Written by DailyFX | Jul 30 08 11:35 GMT |

Fundamental Headlines USDJPY - Japanese fell 2% in June following a 2.8% increase the month prior. Orders from abroad fell for the first time in four years as a global slowdown has dampened demand. Meanwhile, small business confidence fell for a fourth month in July to 39.9-the lowest level in six years. This could spell trouble for the already declining labor market as the sector employs 60% of Japanese workers. USDCHF - The Swiss leading economic indicator fell to 0.90 from a revised lower 0.99 the month prior-the lowest in five tears, as rising costs and a global slowdown continue to weigh on manufacturers. Despite the improvement in the UBS consumption gauge fears have grown that the slowdown is starting to weigh on domestic demand. GBPUSD - The European retail PMI measurement rose to 46 from 44, but remains at a contraction level as rising inflation saps shoppers purchasing power. Indeed, the consumer confidence indicator fell to -20 from -17, while the economic outlook gauge slipped to 89.5-the lowest level since October 2001. The slowdown in the region may keep the ECB at next week's policy meeting. The MPC is trying to battle rising inflation as they adhere to its price stability mandate, but countries experiencing a slowdown like Italy are demanding help and may consider leaving the economic union. Lone Star's Splash (link) - Wall Street Journal Home Prices in May Took a Steep Fall (link) - Wall Street Journal SEC Extends Emergency Order on Short-Selling (link) - Financial Times Deutsche Bank Faces Pressure to Expand Consumer Unit (link) - Bloomberg World Trade May Expand Even as WTO Talks Sputter (link) - Bloomberg DailyFX Disclaimer Investment in the currency exchange is highly speculative and should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only. Accordingly we make no warranties or guarantees in respect of the content. The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the recommendations in this website. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. All intellectual property rights are the property of Daily FX. Daily FX and its affiliates, will not be held responsible for the reliability or accuracy of the information available on this site. The content herein is provided in good faith and believed to be accurate, however, there are no explicit or implicit warranties of accuracy or timeliness made by Daily FX or its affiliates. The reader agrees not to hold Daily FX or any of its affiliates liable for decisions that are based on information from this website. Daily FX highly recommends that before making a decision, the reader collects several opinions related to the decision and verifies facts from at least several independent sources.