U.K. GDP Falls; ECB Liebscher Says Room For Rate Hike

Written by John Rivera, Currency Analyst Fundamental Headlines • GBPUSD – U.K. economic growth slowed to 1.6% year-over-year from 2.3% in the first quarter, which was the slowest pace since 2001. Gross domestic product rose 0.2% in the three months through June, as the housing slump and fall out from the subprime crisis saw construction, manufacturing and financial services fall. The economy is steadily approaching a recession as overall production fell 0.5% in the second quarter. Slow growth and rising inflation is expected to leave the BoE on Hold. Discuss the topic and your trade ideas in the GBP/USD Forum. • EURUSD – German import prices rose 8.9% in June on the back of higher energy costs. It was the fastest pace in more than seven years and surpassed economist predictions of 8.4%. Meanwhile, the M3 money supply in July... [read full story]