U.K. Heads Towards Recession, As Consumption And Mortgage Approvals Fall To Historic Levels

Daily Forex Fundamentals | Written by DailyFX | Jul 29 08 11:14 GMT |

Fundamental Headlines USDJPY - Japanese retail sales rose 0.3% in June from a year earlier, which was the eleventh month in a row of gains. The majority of the gain was due to rising food and fuel prices, which increased 3.6% and 3.0% respectively. Meanwhile, the jobless rate rose to 4.1%, the highest since 2006, which weighed on household spending which fell 1.8%. USDCHF - The UBS consume consumption gauge improved to 2.25 from a revised 1.95 in May. It was the first increase in four months and biggest gain since April 2007. A strong labor market and wage growth have fueled consumer spending. Domestic growth may offset slumping exports and keep the economy from contracting, allowing the SNB to keep interest rates in hold. GBPUSD - The CBI retail trade survey fell sharply to -36 from -9 in June, which was the lowest in 25 years. 61% of respondents said that sales were lower in June and the outlook remains bleak with next month's expected reading of -32. Also, mortgage approvals fell to 36,000 from 41,000 in May, which was the lowest level since at least 1999. The housing slump continues to deteriorate as credit markets remain sticky, which has begun to weigh on the broader economy. As the country approaches a recession the BoE hands remained tied as inflation has risen to 3.8%. Banks Act to Aid Mortgage (link) - Wall Street Journal Merrill Aims to Raise Billions More (link) - Wall Street Journal Doha Trade Talks Stall Over Farm Imports (link) - Financial Times Nomura Has Unexpected Loss on Provisions, Trading (link) - Bloomberg U.K Mortgage Approvals Decline to Lowest Since 1999 (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.