Market Brief

The Usd was weaker in the Asian session.The EurUsd traded between 1.4060 and 1.4125, while the UsdJpy traded between 97.45 and 97..98. Asian regional indexes are trading higher, as risk appetite is slow returning to the market. Currently, crude is at $72.40bll and gold at $953.68oz.. The last auction of the week passed without incident, as the 30y auction recorded a bid-to-cover ratio of 2.68 and 49% was awarded to indirect bidders. Overall yields dropped as investors worries lessened after the auction as they found levels attractive. In China, May's data released today continued to outpace market expectations, suggesting the economy is on a recovery path. Industrial production growth jumped sharply to 8.9% y/y in May, from 7.3% prior. In the FX world, G10 currencies will continue to monitor China’s economic data. With Chinese growth supporting global growth and the demand for commodities, this will be positive for cyclical currencies and negative for the USD. This weekend's G8 meeting pre reports indicate that FX will not be on the official agenda since central bank officials will not be present. However, a French official has already stated concerns regarding volatility in FX, while Paul Volcker stated that it is important to maintain the USD's purchasing power at home and abroad. We expect officials to sound optimistic regarding the global recovery, which should be Usd negative.

G10 Advancers and Decliners vs USD

Global Indexes Current Level % Change
Nikkei 225 Index10,135.82+ 1.55
Hang Seng Index18,928.02+ 0.73
Shanghai Index2,906.29- 1.87
FTSE 100 Index4,467.12+ 0.12
DAX Index5,100.22- 0.14
SMI Index5,507.16+ 0.43
DJIA futures8,705.00+ 0.20

World Markets Current Level % Change
Gold952.40- 1.00
Silver15.28- 1.34
Crude wti72.15- 0.87

Todays Calender Estimates Previous Country / GMT
Industrial Production-0.4-2EUR / 11.00
Michgan Consumer Confidence70.065.7USD / 15.55