FX Highlights

• USD is trading at a new low for 2009 pressured by economic optimism, rising equity prices and a surge in crude oil prices
• China's May PMI falls to 53.1 from 53.5 in April, the decline was smaller than expected, optimism about China's economy fuels equity market gains and improving risk appetite
• Crude oil prices hit seven-month high trading above $68 a barrel
• Treasury Secretary Geithner says US favors strong dollar, reassures China that US assets are safe, calls on China to boost domestic demand, says global recession losing force, financial markets improving, wants closer ties with China
• Japan's total cash earnings for April fall 2.5%, JPY higher
• UK May Hometrack house prices unchanged, UK CIPS manufacturing index rises to 45.4 versus 42.2, GBP trades above 1.6400
• Australia's April retail sales rise 0.3%, Q1 business inventories fall 1.2%, Q1 company profits fall 7.2%, May inflation index -0.3% and May PMI rises 7.4 points to 37.5, AUD higher
• EU  May manufacturing PMI rises to 40.7 from 36.8 last month, EUR higher
• GM to file for bankruptcy this morning
• US equity markets set to open higher, European equities 3% higher, Nikkei closed 156 points higher

Upcoming Events

• US-Monday, April personal income and consumption will be released both reports are expected at -0.3%, along with April construction spending expected at -0.4% compared to 0.3% last month and May ISM index expected at 43.5 compared to 40.1 last month
• CAN- Monday, March GDP will be released expected at -0.1%

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090601_US_Morning_Notes.pdf		49 Kb