Forex Investment and Currency Trading

Last week’s key releases highlighted rising inflation pressures and weak economic conditions. Headline CPI rose 1.1% in June, lifting yr/yr headline inflation to 5.0%, and the core CPI rose to 2.4%. The 12- month headline inflation has been above 4% in every month but one since last November, as well as on occasion in 2005 and 2006. Retail sales weakened in June, rising a scant 0.1%, despite the tax rebates, as higher gasoline prices generated further declines in auto sales and took the steam out of general merchandise, restaurant, electronic and housing-related sales. Housing starts rose 9.1%, but that reflected a one-time change in New York’s building code that contributed to a huge boost in reported starts of multi-unit dwellings; nationally, single-family unit starts fell 5.3%, with all regions posting declines. Home sales and the inventory of unsold homes, not new housing starts, are a more important indicator of how rapidly the housing market is adjusting.