FX Highlights

  • USD is trading lower reversing earlier gains sparked by concern about global recovery
  • USD is pressured by concern about USD reserve status and report of better than expected German industrial orders, Russia and China will push for global currency talks at this week's G-8 summit, GBP pressured by report of weaker than expected industrial production and house prices
  • German industrial orders rise 4.4% compared to flat last month, ECBs Ordonez does not see significant inflation risks says interest rates are appropriate, Luxembourg's Finance Minister Juncker says we are still in the middle of worldwide financial crisis, EUR trades higher and at one month high versus the GBP
  • UK May industrial production falls 0.6%, manufacturing output falls 0.5%,Q2 BCC services home sales at -16, the British Chamber of Commerce recommends that the Bank of England expand its asset purchase program to boost the economy, UK PM Brown says recession may get worse, GBP lower
  • Australia's June PCI falls 4.3 points to 42.6, RBA leaves rate policy unchanged, falling inflation leaves room for further easing, global economy is stabilizing, AUD higher
  • Canadian officials expect no reference on reserve currencies at the upcoming G-8 meeting, French officials said the G-8 is not the appropriate forum for Forex talks, Watanabe says dollar should remain key global currency, Russia India and China to push for talks on global currency at the G-8 summit
  • GM m to exit bankruptcy this week
  • US equity markets set to open higher, European equities 1% higher, Nikkei closed 33 points lower

Upcoming Events

  • US-Tuesday, June Redbook weekly retail sales and ABC weekly consumer comfort index will be released
  • CAN-Tuesday, May building permits will be released expected to rise 0.7% compared to -5.4% last month along with June IVEY PMI expected at 50.3 compared to 48.4 last month