FX Highlights

• USD is trading higher supported by safe haven flows sparked by report of North Korean missile tests, weak EU economic data, concern about German banks and weaker global equity market trade
• North Korea tests more missiles Tuesday after report of missile tests Monday, readies more rockets for any US attack, the tests provoked international condemnation
• Japan's April corporate service index falls to 0.2%, JPY mixed
• OECD says Q1 global GDP falls most on record at- 2%
• EU March industry orders fall 0.8%, March account deficit widens to -3.5 bln from -2.1 bln last month
• ECBs Weber says economic downtrend easing in Germany, ECBs Gonzalez-Paramo says the ECB has not decided if 1% is the interest rate floor expects economic recovery to begin in 2010,
• Eurogroup's Juncker warns that further EUR rise may limit EU recovery
• The Daily Telegraph warns  of another potential banking crisis in Germany, says German debt set to blow "like a grenade", EUR lower
• Swiss Q1 nonfarm payrolls rise 0. 8%, CHF lower
• Pimco's Gross says the US may have to get used to unemployment over  8% and 2% growth because of lost consumer confidence in credit and weakened financial markets
• Fed Chairman Bernanke tells grads at Boston College School Law that US economy will recover because it has too many fundamental strengths to keep it down for too long
• Canada Finance Minister Flaherty says that Canada's manufacturing sector will become a smaller percentage of the economy, CAD lower
• Saudi official warns that crude prices may reach $150 a barrel in the next three years
• US equity markets set to open lower, European equities 1.2% lower, Nikkei closed 36 points lower

Upcoming Events

• US- Tuesday S&P Case Shiller home price index will be released expected at -18.5, along with the May consumer confidence expected at 42 compared to 39.2 last month

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090526_US_Morning_Notes.pdf		52 Kb