ASIA-PACIFIC Trading Newsletter

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Germany FACTORY ORDERS S.A.

EMU economic indicators - German industrial new orders (June): down by BHF−Bank

German industrial new orders probably plummeted in June, as the correlated climate indicators deteriorated. However, output in the German producing sector could have remained stable: the correlated indicators painted a mixed picture and the relatively high number of working days will have had a positive effect. The German trade balance and current account are likely to have recovered, as is usually the case in June.

Friday Notes - Mounting recession risks in Europe by HVB Group

Top Market Movers Review

US FED INTEREST RATE DECISION

FOMC: Preview of policy meeting by Danske Bank A/S

Tonight at 20:15 CET the Federal Open Market Committee (FOMC) is set to announce its policy rate decision. In line with the market and most analysts we expect the FOMC to keep the Fed funds rate un−changed at 2%. Despite rising disagreement among Fed members, we look for a neutral statement, but with one or two dissenters on the decision. With the market discounting 32% probability for a September hike and a little more than 60% for a hike this year; we believe that risks are skewed for lower bond yields and a steeper curve going into the meeting.

• EURO and GBP are expected to make either way big swings... by Dr. Sivaraman
• Fed keeps key target rate unchanged at 2% (Thomson Financial News)
• Text of today's Federal Open Market Committee policy statement (Thomson Financial News)
• The Federal Reserve leaves Funds Rate unchanged at 2.0%, as expected (FXstreet.com)

Mid−Day Forex Technical Report − Dollar Boosted by Falling Oil and Gold ahead of FOMC by ActionForex.com

Market Session Recaps - London Session by FOREX.com

Daily Forex News - Forex − Euro/Dollar would trade in narrow ranges before Fed's decision today by ACM − Advanced Currency Markets

EMU RETAIL SALES

Euro Zone's retail sales decline in June (FXstreet.com)

FXstreet.com (Barcelona) – Consumer spending is showing serious signs of contraction in the Euro Area, retail sales have fallen lower than expected in June, posting the largest year on year decline ever.

• Read the oficial report by Eurostat
• UPDATE: June Retail Sales Falter In Euro Zone (Dow Jones)
• UPDATE: Euro−Zone June Retail Sales Fall Largest On Record (Dow Jones)
• Euro zone June retail sales down 0.6 pct vs May, down 3.1 pct yr−on−yr (Thomson Financial News)

European Market Update - Euro−Zone Retail Sales Hit New Lifetime Low by TradeTheNews.com

UK INDUSTRIAL PRODUCTION

UK manufacturing output disappoints in June (FXstreet.com)

FXstreet.com (Barcelona) – Manufacturing output in the UK has declined in June, weighed by weak performances in the electrical and optical equipment industries, although the decline has been widespread among sectors, according to the latest report by National Statistics

• Read the Oficial Index Production at National Statistics
• DATAWATCH Fall in UK manufacturing output intensifies recession fears (Thomson Financial News)
• UK manufacturing, industrial output fall further in June − UPDATE (Thomson Financial News)
• UK manufacturing, industrial output fall further in June, to weigh on Q2 growth (Thomson Financial News)

Australia RBA INTEREST RATE DECISION

Australia's central bank keeps rates unchanged (Thomson Financial News)

Australia's central bank held interest rates unchanged at a 12−year high of 7.25 percent on Tuesday, defying growing pressure for a cut as the economy slows rapidly. The Reserve Bank of Australia (RBA), which held its monthly board meeting on Tuesday, raised rates twice earlier this year to cool the economy and combat an unwelcome rise in inflation.

• Read the Interest Rate Decision report at Reserve Bank of Australia

Market Session Snap−Shot - Asian Session − RBA Holds But Signals Cuts by ACM − Advanced Currency Markets

Trading News Report - RBA Rate Decision by FXCM