Forex News: Japanese Yen Rallies While Asian, European Markets See Red As Risk Aversion Reigns

Fundamental Headlines

• AUDUSD – Approvals for Australian home loans grew 4 percent during November, as resilient conditions in the manufacturing and mining sectors keep labor markets tight and demand in the housing sector strong. For more resources dedicated to this currency please, visit the new Australian Dollar Currency Room.
• EURUSD – Euro-zone CPI figures rose 0.4 percent during the month of December, leaving the annual rate well above the ECB's 2 percent ceiling at 3.1 percent. Nevertheless, with downside risks to growth remaining a major concern, the ECB has thus far avoided enacting a rate hike and Trichet may simply be paying lip service in order to keep inflation expectations in check. What do you think will happen to the EUR/USD? Join the discussion and voice your opinion on the DailyFX Forum.
• GBPUSD – UK jobless claims dropped a greater-than-expected 6,400, helping to keep the jobless rate at the 1975 low of 2.5 percent. While expansion in the country was strong in 2007, there are concerns that the credit crunch and slowdowns in the services, manufacturing, and housing sectors will cool growth, which is part of the reason the BOE cut rates in December. Discuss this and other related subjects in the GBP/USD Forum.

• US Economic Stimulus Deal May Be Possible (link) – The Wall Street Journal
• IEA Says Demand For Oil Set To Slow (link) – Financial Times
• Japanese Stocks Fall for Fourth Day on US Recession Concerns (link) – Bloomberg
• Airbus 2007 Deliveries Beat Boeing; Orders Lag Behind (link) – Bloomberg
• European Banks Predict Lengthy Troubles for '08 (link) – The Wall Street Journal
• UK Labour Market Still Buoyant (link) – Financial Times