Key News

• The 16-country euro zone lost a record 1.22 million jobs in the first quarter of 2009, data showed on Monday, highlighting the depth of recession and boding ill for any quick turnaround. (Reuters)

• Russian Finance Minister Alexei Kudrin said the dollar is in “good shape,” further affirming that there’s no substitute for the world’s reserve currency. (Bloomberg)

• Finland's annual inflation rate fell to zero in May, the lowest level in 5 years, the government statistics agency said Monday. (AP)

Key Reports Due Today (WSJ):

• 8:30 a.m. June Empire State Fed Manufacturing Survey: Expected: -3. Previous: -4.55.

• 9:00 a.m. Apr Tsy International Capital: Previous: +$36.9B.

• 1:00 p.m. Apr NAHB Housing Index: Previous: 16.

Quotable

Allen[Woody]: That's quite a lovely Jackson Pollock, isn't it? Woman: Yes, it is. Allen: What does it say to you? Woman: It restates the negativeness of the universe. The hideous lonely emptiness of existence. Nothingness. The predicament of man forced to live in a barren, godless eternity like a tiny flame flickering in an immense void with nothing but waste, horror, and degradation, forming a useless, bleak straitjacket in a black, absurd cosmos. Allen: What are you doing Saturday night? Woman: Committing suicide. Allen: What about Friday night?



FX Trading – Euro Uht Oh!

Soaring unemployment in Europe, with still huge banking exposure, rising political tensions, fiscal concerns among the PIGS, a little country called Latvia that may be the canary in the coal mine for its Eastern European neighbors so similarly afflicted and a Russian finance minister reaffirming his commitment to the US dollar and what do you get? Maybe a top in the euro!

In the chart above, John Ross noticed a potential head and shoulders pattern shaping up in the euro – USD pair. He said to me this morning, “It looks like the euro is making a beeline for the neckline.” And he may be right.