Although the markets are focused on the two day FOMC meeting which starts later today there are a number of fundamental news items on the economic calendar for both the Euro and the US Dollar which are worth mentioning.  The day started with the German final Consumer Price Index numbers which although came in marginally ahead of target at 0% against a forecast of -0.1%, it was the WPI (Wholesale Price Index) numbers released at the same time which have shocked the market.  As a leading indicator of consumer inflation the WPI measures the change in the price of goods sold by wholesalers and by coming in at -0.5% against a forecast of 0.1% reveals that the spectre of deflation still stalks the Eurozone.  This fall is the first in 22 years and comes during the worst recession since WWII which has all but strangled consumer spending.  Meanwhile in France the French Government Balance posted a figure of -86.6bn against a previous of -88.7bn, a marginal improvement.  This number represents the difference in value between central government income and spending for the year to date.

In the US the preliminary Non Farm Productivity figures are due shortly and are expected to show that productivity has most likely risen strongly in the last quarter.  This is coupled with the Preliminary Unit Labour Costs which are the annualized change in the price of businesses pay for labour, excluding the farming industry.  Both the above items have now been released and have actually come in worse than expected – so much for the experts!!  The day rounds off in the US with yet another diffusion index with the catchy title of the IBD/TIPP Economic Optimism forecast today at 47.4, a marginal improvement over last month’s 46.3 – the closer to 50 & above the better.

You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links.  I have also included details on an excellent ECN broker.